Our Vision: Financial Statements of Standard Exchange Company (UK) Limited 164

ANNUAL REPORT 2011
Contents
Board of Directors 2 Executive Committee, Audit Committee, Green Banking Committee & Shariah Supervisory Committee 3 Corporate Information 6 Management Team 7 Group Corporate Structure 8 Head Office & Branch Network 9 Credit Rating Report 12 Notice of the 13th Annual General Meeting 13 Chairman's Address 15 Message from the Managing Director 19 Directors' Report 21 Photographs of Project Financed by Standard Bank Ltd. 76 Photographs of Management Committee 78 Status of Compliance of Bangladesh Banks guidelines for Corporate Governance (BRPD circular no 16 dated 24.07.2003) 79 Compliance Report on SEC's Notification 82 Shareholders Information Graphical Presentation 85 Five Years Financial Highlights 86 Auditors' Report 88 Consolidated Balance Sheet 90 Consolidated Profit and Loss Account 92 Consolidated Cash Flow Statement 93 Consolidated Statement of Changes in Equity 94 Balance Sheet 95 Profit and Loss Account 97 Cash Flow Statement 98 Statement of Changes in Equity 99 Liquidity Statement 100 Notes to the Financial Statements 101 Balance Sheet of Islami Banking Window 141 Profit and Loss Account of Islami Banking Window 142 Balance Sheet of SBL Capital Management Limited 143 Income statement of SBL Capital Management Limited 144 Cash Flow of SBL Capital Management Limited 145 Statement of Changes in Equity 146 Notes to the Financial Statements of SBL Capital Management Limited 147 Balance with other Banks Nostro Accounts 154 Fixed Assets Including Premises, Furniture And Fixtures 155 Loan & Advances to Directors 156 Name of the Directors/Sponsors and the entities in which they have interest 157 Name of the Directors and their Shareholdings 161 Highlights 163
Our Vision
To be a modern Bank having the object of building a sound national economy and to contribute significantly to the Public Exchequer.
Financial Statements of Standard Exchange Company (UK) Limited 164 Company Information 165 Directors Report 166 Accountants Report on the Financial Statements 167 Profit and Loss Account 168 Balance Sheet 169 Directors Statements Required by Section 415 for the year ended 31st December 2011 170 Notes to the Accounts 171 Detailed Profit and Loss Accounts 173
Our Mission
To be the best private commercial bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability.
Standard Co (USA) Inc. D/B/A: Standard Express 174 Company Information 175 Directors Report 176 Certified Public Accountant 177 Balance Sheet 178 Directors Statements Required by Section 415 for the year ended 31st December 2011 179 Profit and Loss Account 180 Notes to the Accounts 181 Detailed Profit and Loss Accounts 184 Proxy Form 185
Our Core Values
Our Shareholders: By ensuring fair return on their Our customer: To become most caring bank by providing our business. investment through generating stable profit. the most courteous and efficient service in every area of Our employee: By promoting the well being of the members of the staff.
Registered Office Metropolition Chamber Building (3rd Floor) 122-124 Motijheel Commercial Area Dhaka-1000, Bangladesh. Phone : 7175698, 7169134, 9560299, 9558375 Tele. Fax : 7176367, 7169078 E-mail : sblho@bangla.net Website : www.standardbankbd.com SWIFT : SDBLBDDH
Community: Assuring our socially responsible corporate national policies and objectives.
entity in a tangible manner through close adherence to
ANNUAL REPORT 2011
Board of Directors
Chairman Ln. Kazi Akramuddin Ahmed Vice Chairman
Executive Committee
Mr. Kamal Mostafa Chowdhury Mr. Md. Ferdous Ali Khan Mr. S.A. Farooqui, Managing Director Mr. A.F.M. Nizamul Islam Chowdhury Mr. Sheikh Mesba Uddin Mr. Ferozur Rahman Mr. Md. Nurul Islam Mr. S.A.M. Hossain Chairman Member Member Member Member Member Ex-officio Member Secretary
Al-Haj Mohammad Yousuf Chowdhury Directors
Mr. Kamal Mostafa Chowdhury Mr. Mohammad Nurul Islam Mr. Ashok Kumar Saha Mr. Ferozur Rahman Mr. S A M Hossain Mr. Abdul Ahad
Audit Committee
Mr. S.S. Nizamuddin Ahemd Mr. Md. Zahedul Hoque
Chairman Member Member Member Secretary
Mr. Harun Rashid Chowdhury (upto 06. 08. 2011) Mr. Mohammad Monzurul Alam Mr. Mohammed Abdul Aziz
Mr. A.F.M. Nizamul Islam Chowdhury
Mr. Md. Fayekuzzaman, MD, ICB
Mr. Mushfeque Mamun Rizvi
Al-Haj Mohammed Shamsul Alam Mr. Md. Zahedul Hoque Mr. Ferdous Ali Khan Mr. Harun or Rashid (upto 02. 10. 2011) Mr. Moshfeque Mamun Rizvi Mr. Shaikh Mesbauddin ICB represented by the Managing Director Mr. Md. Fayekuzzaman
Green Banking Committee
Mr. Mohammed Abdul Aziz Mr. Ashok Kumar Saha Mr. Abdul Ahad
Chairman Member Member Member Ex-Officio Member Secretary
Al-haj Mohammed Shamsul Alam
Mr. S.A. Farooqui, Managing Director Mr. Syed Mohammad Masum
Mr. S.S. Nizamuddin Ahmed, Independent Director Managing Director & CEO Mr. S.A. Farooqui
Shariah Supervisory Committee
Janab Prof. Mowlana Mohammad Salauddin

Head Mohaddis (Hadits Dept) Jameah Qasemiah Kamil Madrasha, Narsinghdi Managing Director of the Bank Mr. A.F.M Nizamul Islam Chowdhury
Janab Kazi Akram Uddin Ahmed

Chairman of the Bank
Chairman Member Member Member Ex-Officio Member Secretary
Group Company Secretary
Janab Hafiz Kazi Muhammad Ibrahim
Khatib, Baitul Mukarram National Mosque
Mr. A.F.M. Nizamul Islam Chowdhury
Janab Kazi Khurram Ahmed Janab S. A. Farooquir
STANDARD BANK LIMITED
ANNUAL REPORT 2011
Board of Directors
Ln. Kazi Akramuddin Ahmed Chairman
Al-Haj Md. Yousuf Chowdhury Vice Chairman
Al-Haj Md. Shamsul Alam Director
Abdul Ahad Director
Md. Zahedul Haque Director
Harun-Or-Rashid Director (upto 02. 10. 2011)
Kamal Mostafa Chowdhury Director
Mohammad Nurul Islam Director
Ashok Kumar Saha Director
Ferozur Rahman Director
Ferdous Ali Khan Director
Moshfeque Mamun Rizvi Director
Md. Fayekuzzaman Director
Shaikh Mesba Uddin Director
Harun Rashid Chowdhury Director (upto 06. 08. 2011)
Md. Monzurul Alam Director
S. A. M. Hossain Director
Mohammed Abdul Aziz Director
S. S. Nizamuddin Ahmed Independent Director
S. A. Farooqui Managing Director & CEO
ANNUAL REPORT 2011
Corporate Information
Name of the Company Chairman of the Bank Legal Form : : Ln. Kazi Akramuddin Ahmed Standard Bank Limited
Management Team
Mr. S.A. Farooqui Managing Director & CEO Mr. Md. Shahabuddin Chisti Mr. Muhammad Ali Mr. A F M Quamrul Hasan Mr. Probir Kumar Bhowmick Ms. Quamrun Nahar Hasmi
May, 1999 under the Companies Act 1994, Subsequently Stock Exchange Limited. 3rd June, 1999
listed in Dhaka Stock Exchange Limited and Chittagong
A public limited company incorporated in Bangladesh on 11th
Mr. Md. Nazmus Salehin Additional Managing Director Mr. Md. Alauddin Al Azad Deputy Managing Director Mr. Md. Abul Hossain Deputy Managing Director
Commencement of business Registered Office Telephone Telefax
SWIFT Code E-mail
: : :
122-124, Motijheel C/A, Dhaka-1000. +880 2 7176367, 7169078 SDBLBDDH
+880 2 7175698, 7169134, 9560299, 9558375
Metropolitan Chamber Building (3rd floor)
Group Company Secretary Mr. A F M Nizamul Islam Chowdhury Executive Vice President Mr. Mufakhkharul Islam Mr. Syed Mohammad Masum Mr. Md. Nazrul Islam
Web Page Auditors
: :
www.standardbankbd.com Chartered Accountants Barrister-at-Law Mr. M. Ziaul Hasan
sblho@bangla.net
Khan Wahab Shafique Rahman & Co.
Legal Advisor
Sr. Vice President Mrs. Syeda Khaleda Begum Ms. Haider Nurun Naher Mr. A.M.M. Lasker Mr. Sheikh Abu Ahmed Mr. Kazi Md. Talha Mr. Md. Nurus Safa Mr. Mohammad Ali Mr. Naim Md. Abdur Rashid Mr. Muhammad Sakhawatur Rahman Mr. Mohammad Abdul Wali Vice President Mr. H A Z M Mahegir Mr. Md. Gaznafar Ali Mr. Nasir Ahmed Mr. Syed Anisur Rahman Mr. Mohammad Abdul Qaium Khan Mr. Md. Abu Sayed Mr. Md. Nurul Islam Mr. A.H.M. Manzur Quader Khan Mr. Md. Saiful Islam Khan Sr. Asst. Vice President Mr. Md. Sanaullah Mr. Md. Zakirul Islam Mr. Md. Rezaul Karim Mr. Kazi Zahirul Haque Mrs. Arjoomand Begum Mr. S.M. Mizanur Rahman Mr. Md. Golam Mostafa Mr. Md. Suruj Ali
Tax Consultants
Advocate & Tax Consultant Managing Director & CEO
: :
M/s. Hasan & Associates Alhaj Md. Serajul Islam
Additional Managing Director Deputy Managing Director
S. A. Farooqui
i. Md. Alauddin Al-Azad II. Md. Abul Hossain A. F. M. Nizamul Islam Chowdhury
Md. Nazmus Salehin

6 STANDARD BANK LIMITED
Asst. Vice President Mrs. Rebeka Sultana Mr. Haradhan Chandra Chakraborty Mr. Md. Mabzulul Bari Mr. Md. Zahangir Alam Mr. Md. Shafiqul Hassan Mr. T M Nurul Islam Talukder Mr. Syed Mosnoon Ali Mrs. Rubina Khan Mr. Md. Tajul Islam Chowdhury Mr. Rahim Khan Mr. Md. Emdadul Hassan Mr. Md. Rafiqul Islam Mr. Md. Ibrahim Khalil Mr. Mamun Abdur Raschid Mr. S. M. Nazrul Islam Mr. Humayun Kabir Mr. Sheikh Lutfar Rahman Mr. A.K.M. Manjur Alam Mr. Kazi Mohidur Rahman Mr. Md. Abu Hena Nazimuddin Mr. Md. Mahbubur Razzak Mr. Md. Ekramul Haque Mr. Md. Zakir hossain Mr. Prabir Ranjan Das Mr. Md. Abdus Salam Mr. Md. Nurul Islam Mr. Ashek Abedin Mr. Kanchan Kumar Dey Mr. Md. Anwar Hossain Mr. Md. Nayeem Chowdhury Mr. Md. Farhad Hussain Mr. Parvez Mahfuz Mr. Md. Golam Mawla Md. Abdul Mannan Mr. Md. Saiful Islam Mr. Mesbah Ul Alam Mr. Mohammad Shohrab Hossain Mr. Mohammad Faisal Mr. Md. Ataur Rahman Mr. Munshi Golam Rahman Mr. Md. Rezaul Hoque Mr. S. M. Amir Hossain Mr. Masudur Rahman Mr. Md. Alhaj Ullah
STANDARD BANK LIMITED 7
ANNUAL REPORT 2011
Group Corporate Structure
Head Office and Branch Network

Head Office Metropoliton Chamber Building (3rd Floor) 122-124, Motijheel Commercial Area Dhaka-1000, Bangladesh Divisions Head Office (Annex Building) 28, Bengal Centre (8th Floor) Standard Bank Ltd. Training Institute Internal Control & Compliance Division SME & Retail Credit Division Agricultural & Rural Credit Division Development & Marketing Division
Board & Company Affairs Division Human Resources Division Credit Division Loom Recovery Division Financial Administration Division Credit Administration Division (Recovery Unit) System & Operation Division Risk Management Division General Banking Division Treasury Division Corporate Banking Division Information Technology Division Brand & Corporate Affairs Division
International Division Card Division Islami Banking Wing Anti Money Laundering Department
Head Office (Annex Building) Tapa Complex 169, Shahid Syed Nazrul Islam Sarani, Bijoy Nagar, Dhaka
Subsidiary Company 100% owned by Standard Bank Limited 1. SBL Capital Management Limited 2. Standard Exchange Co. (UK) Ltd. 3. Standard Co. (USA) Inc. (Standard Express) 4. Standard Express
Branch Network
DHAKA ZONE
1. Principal Branch Metropolitan Chamber Building (Ground floor), 122-124, Motijheel C/A., Dhaka-1000. 9560299, 9558375, 9559044, 9570893, 01711-425402 10. Banani Branch Plot # 106, Road-11, Block-C, Banani, Dhaka. 9889545, 8829022, 01726-176601
2. Gulshan Branch Shazad Palace, 32, North C/A, Gulshan-2, Dhaka-1212. 9881015, 9885164, 8852679, 8861232, 01914-743359, 01911-334997 3. Topkhana Road Branch 36 Topkhana Road (1st floor), Dhaka-1000. 7168796, 9571413, 01713-062699, 01717000538
11. Mirpur Branch Northern Lions R.P. Tower, Plot-4, Block-D, Mirpur-2, (Near Sony Hall) Dhaka. 9014060, 9014059, 01922-538509, 01711850130 12. Nawabpur Road Branch Shahi Bhaban (1st floor), 106, BCC Road Thatari Bazar, Dhaka, 9512139-40, 01727-579630 13. Green Road Branch Castle Green (1st floor), 142 Green Road, Dhaka. 9102770-1, 01713-049030, 01712-522138 14. Pragoti Sharani Branch Kazi Hazi Ahmed Plaza, KA-70, Pragati Sharani (1st floor)Kuril, Badda, Dhaka-1229 8410225-7, 01819-262898, 01715366786 15. Ring Road Branch Probal Tower, 45-49 Ring Road (1st floor) Adabor-Shamoly, Dhaka. 01715-077946, 01674-992926, 9103413- 4
4. Dhanmondi Branch House # 4, Road # 27(Old), 16(New), Dhanmondi R/A, Dhaka-1205. 9145737, 8156621, 01818-069351 5. Imamgonj Branch Bellal Market, 79, Moulvi Bazar, Dhaka-1100. 7316820, 7342525, 7311243, 01711-648615, 01711307180
6. Uttara Model Town Branch Plot #113/C, Road-7, Sector-4, Uttara Model Town, Dhaka. 8955171, 8955172, 011-99-812113,01819022644 7. Foreign Exchange Branch 81, Motijheel C/A., (1st floor), Dhaka-1000. 9571933, 7160787, 01755-500237,01722242869 8. Panthapath Branch 77, Bir Uttam C.R. Dutta Road, Free School Street, Hatirpool, Dhaka. 9667801, 9666521, 01730015104
16. Matuail Branch Konapara, Momenbagh More, Matuail, Demra, Dhaka 7546147, 01924-954141, 01924827106 18. Malibagh Branch Faith Tower, 476/A, DIT Road, Malibagh, Dhaka. 01819-434858, 9331790, 9331929
9. Gulshan-1 Branch Uday Tower, 57/A Gulshan Avenue, Gulshan-1, Dhaka. 8811641, 8827850, 9862111, 01711-675320
17. Mohammadpur Branch Manama Turag, 14/23 Shahjahan Road, Block-A, Mohammadpur, Dhaka. 01715364865, 9110630, 9110705
ANNUAL REPORT 2011
Branch Network
19. Nawabgonj Branch Nawabgonj Adhunik Biponi, Zellaparishad Market, Nawabgonj, Dhaka., 01716339111 8. Coxs Bazar Branch Hefazat Market, 103, Main Road, East Bazar Ghata, Coxs Bazar, 0341-51377-8, 01815602796 9. Bahaddarhat Branch Manila Tower, Bahaddarhat More, Chittagong 2552512-3, 01817-700484 10. Chowdhuryhat Branch Fateyabad, Hathazari, Chittagong 683225, 683342, 01819331290 11. Oxygen More Branch Ali Noor Complex (1st floor), Oxygen More, Chittagong. 01711-111269, 2584461, 2584462
Branch Network
3. Satkhira Branch Islam Tower (1st floor), Polashpole, Satkhira. 047162405, 01916-481111 4. Jessore Branch 6/D R.N. Road, Jessore 0421/68394-5, 01714-086575, 01711150073 5. Benapole Branch Nahar Tower, Benapole Bazar, Benapole 04228-76076, 01711-000708/01715-613615 6. Faridpur Branch R.K. Plaza (1st floor), 244, Goal Chamot Hazralota, Faridpur, 0631-61875 01716-346036 & 01911-530685, 0631- 61877 7. Gopalgonj Branch City Square Shopping Mall, College Road, Gopalgnoj 6681570-1, 01733-808799, 01913-845828 8. Takerhat Bazar Branch Nosipur, Rajoir,Madaripur 01712-599795, 01712-901592, 01712126690 9. Kotalipara Branch, Gopalgonj K. M. Super Marker, Ghagar Bazar, Kowtalipara Gopalgonj, 6651277, 01719-816944 10. Shibchar Branch Iman Gomosta Market (1st floor), Shibchar Bazar, Main Road, Madaripur. 01721-656895, 0662456500 11. Barisal Branch Mannan Plaza, 84, Sadar Road, Barisal 01712757967, 0431-61273-4 12. Patuakhali Branch Gazi Plaza (1st floor), 2-3 Sadar Road, Patuakhali. 044-162359, 01711133083
NORTH BENGAL AREA
20. Munshikhola Branch Dhaka-Nararangonj Road, Pagla, Munshikhola, Dhaka. 7448979, 01713078155 21. Narayangonj Branch Khan Super Market, 47/9 BB Road, DIT, Narayangonj 7646153, 7647082, 01714-096158, 01915866384 22. Ekuria (Keranigonj) Branch Hasnabad, Ekuria, Keranigonj, Dhaka. 7761100, 01730904651 23. Dakkhin Khan Branch 298, Dakkhin Khan Bazar, Dakhin Khan, Dhaka. 8956056, 01912-965887 24. Savar SME/Krishi Branch 66, Bazar Road (1st floor), Savar, Dhaka. 7745991&7745992, 01715-866111 25. Gazipur SME/Krishi Branch Sahabuddin Complex (1st floor), 168, Joydebpur Bazar, Gazipur. 9264263 & 9264155, 01716-040988 26. Shafipur Branch Shapna-Joy Tower, Shafipur Bazar, Kaliakoir, Gazipur. 0682251058-9, 01712-248234, 01716-004886 27. Kamarpara Branch A. R. Complex, 75 Kamarpara, Uttara, Turag, Dhaka. 8981592-1, 01819-289518
1. Rajshahi Branch Chand & Shopp. Complex New market, Rajshahi 0721-811981-2, 01718-679425
2. Bogra Branch Helal Mansion, Sherpur Road, Sutrapur, Bogra Sadar, Bogra, 0516-7507-8, 01730-300730
12. Basurhat Branch, Noakhali Rupali Plaza (1st floor), Bashurhat, Companigonj, Noakhali. 0322356093, 01711-712503 13. Nanglemora SME/Krishi Branch Nanglemora High School Premises, Hathazari, Chittagong.01729-094379, 01710-999912, 01711978810
3. Rangpur Branch Shah Jamal Market(1st floor), 11, Station Road, Rangpur 0521-52127, 51795, 01711-068544 4. Dinajpur Branch Northern Plaza, Gonesh Tola, Dinajpur. 01712-739244, 053-163211 & 163979
Branch to be opened in 2012

13. Chatteswari, Chittagong 14. Noapara, Chittagong
5. Kustia Branch 43, N.S. Road (1st floor), Amlapara, Kustia. 071-71298, 01712-613380, 07172458
SYLHET AREA

28. Mohakhali Branch, Dhaka 30. Askhona Branch, Dhaka
29. Kachpur Branch, Narayangonj
CHITTAGONG ZONE
1. Agrabad Branch Hossen Chamber (G/F), 105, Agrabad C/A, Chittagong 711808, 713432, 2513857,2513856, 2512515, 2512598, 2512599, 01711-809177, 01817030246, 01819328491 2. Khatungonj Branch 33, Ramjoy Mohajon Lane, Khatungonj, Chittagong. 610192-3, 639593-4, 2512598, 01819-386887 3. Jubilee Road Branch 6 Noor Ahmed Road, Chittagong 612188, 627811, 610356, 01730015106
1. Sylhet Branch Sylmart Complex, Naya Sarak, East Z. B., Sylhet 0821-710434, 721842, 01716-521725 2. Moulvi Bazar Branch Kushumbagh Shopping City, Sylhet Road, Moulvibazar Sadar, Moulvibazar 0861-63451-2, 01199-331789, 01726-380979 3. Beani Bazar Branch Jaman Plaza (1st floor), Beani Bazar, Sylhet 08223-56097-8, 01716-929400 4. Bishwnath SME/Krishi Branch Hasmat Ali Complex, College Road, Bishwnath, Sylhet. 01818-635454, 0822-456207-8, 01730-015114 5. Goalabazar SME/Krishi Branch New Plaza, Sylhet Road, Goalabazar, Osmani Nagar, Sylhet. 0824-256189, 01716023769
6. Nilphamari Branch Chamber Building (1st floor), Haji Mohsin Road, Nilphamari Bazar, Nilphamari. 01712-370815, 01716369475, 055162591,
7. Syedpur SME/Krishi Branch Khaled Market (1st floor), Dr. Zhikrul Haq Road, Syedpur, Nilphamari. 01717-134211 & 0552-671454-5, 01718622967
Branch to be opened in 2012 Islami Banking Window

9. Gobindajonj, Gaibandha 10. Chapainawabjonj
13. Tongipara Branch, Gopalgonj 14. Bhojeswar Branch, Naria
8. Rohanpur, Chapainawabgonj
COMILLA DISTRICT
4. CDA Avenue Branch (GEC More) 741, East Nasirabad, (1st floor), GEC More, Chittagong 031-2850940-1, 031-610029(fax), 01674558171 5. Ctg. EPZ Branch Gazi Compl, Airport Rd. EPZ Gate, Chittagong 800168, 800868, 01819-380277, 01819931556 6. Pahartali Branch, Chittagong Abul Khair Bhaban, 20/44, D.T. Road, CDA Market, Pahartali, Chittagong, 2771931-3, 01819-380278, 01840161063 7. Sadarghat Branch Harbourage Dream (1st floor), 291, Sadarghat Road, Chittagong. 619950, 619960, 619970(Fax) 01714131383
1. Comilla Branch 4/4 Kaporiapotti (1st floor), Comilla. 01726264854, 01913314881, 081-72490 2. Brahmanbaria Branch Peara Meah Tower, Court Road, Brahmanbaria 01711-245471, 0851-61788, 01553739791
Chamber Building (G/F) 122-124 Motijheel C/A., Dhaka-1000. 9151484 & 7175698, 7169134, 9558375/301-10, 9515627(Fax). 1. Standard Exchange Company (UK) Limited 101 While Chapel Road, London E1 1DT, UK Tel. +44(0)2073770009, Fax: +44(0)2076554456 Cell: +44(0) 7949494486
SBL Capital Management Limited Overseas Exchange House
A. Islami Banking Window, Dhaka 36 Topkhana Road, (1st floor), Dhaka-1000. 9513515-6, 01713-062699 01730-015106, 01730-015106,
B. Islami Banking Window, Chittagong Hossen Chamber (G/F), 105, Agrabad C/A, Chittagong. 711808, 713432, 01711-809177
MYMENSINGH DISTRICT
1. Mymensingh Branch Canada Square Shopping Centre(1st fl.), 27, Rambabu Road, Mymensingh. 091- 63530 & 63532, 01711-462440 2. Bhairab SME/Krishi Branch 595/2 Bangabandhu Soroni (1st floor), Bhairabpur, Bhairab, Kishorgonj. 01818-246542,09424-72301-2, 01712087900
SOUTH BENGAL AREA
1. Khulna Branch Chamber Bldg. (G/F), 5, KDA Avenue, Khulna 041-732633, 732655, 01711-896589, 01711432638 2. Bagerhat Branch, Bagerhat 119/2 K. Ali Road (1st floor), Bagerhat. 0468-64202-3, 01715-249880
2. Standard Co.(USA) Inc. (Standard Express) 2.1 Standard Express Main Branch 37/22 73rd Street, Suite # B2, Jackson Heights, NY 11372, U.S.A.Tel: +1-646-3318255 E-mail: standardusa@gmail.com,malek_966@yahoo.com
2.3 Standard Express Ozon Park Branch 74 19 101 Avenue, Ozon Park NY 11419, USA. Tel: +1917 300 6048 2.4 Standard Express Brooklyn Branch 471 McDonald Avenue, Brooklyn, NY 11218, Tel: 347627-9666, Fax: 347-627-9667 Email: standardusa@gmail.com
Branch to be opened
2.5 2.6 2.7 2.8
2.2 Standard Express Jamaica Branch 168-22 Hillside Avenue, Jamaica, NY 11432, USA.Tel: +1 718-526-2868, Fax: 718-526-2978
Exchange House to be opened in 2012

3. Sydney, Australia 4. Spain
Los Angeles, USA Florida, USA Astoria Branch, USA Bronx Branch, USA
10
11
ANNUAL REPORT 2011
Credit Rating Report

Standard Bank Limited has been rated by Credit Rating Agency of Bangladesh The summary of the rating is presented below:
(CRAB) on the basis of Audited Financial Statements as on 30 September, 2011. CRAB has rated Standard Bank Limited as A1 (Pronounced as Single A one)
NOTICE OF THE 13th ANNUAL GENERAL MEETING OF THE MEMBERS OF STANDARD BANK LIMITED
Head Office, 122-124 Chamber Building (3rd Floor) Motijheel C/A, Dhaka-1000
Standard Bank Limited
rating in the long term and ST-2 rating in the short term which is stable as
Notice is hereby given that the 13th Annual General Meeting of the honorable Shareholders of Standard Bank Dhaka to transact the following business:
before. Commercial Banks rated A1 in the long term belong to Strong Capacity & High Quality Cohort. Banks rated A1 have strong capacity to meet their
Ltd. will be held on Thursday the 31st May, 2012 at 11:00 a.m. at Bashundhara Convention Center-2, Baridhara, Agenda
financial commitments but are somewhat more susceptible to the adverse effects quality and is subject to low credit risk. of changes in circumstances and economic conditions. A1 is judged to be of high
01. 02. 03. 04.
To receive, consider and adopt the Profit and Loss Accounts of the Company for the year ended on 31st December 2011 and the Balance Sheet as on that date together with the Reports of the Directors and the Auditors thereon. To appoint Auditor(s) of the Company and to fix their remuneration for the term until next AGM. To Consider and approve the loan proposal of the Directors as recommended by the Board.
Commercial banks rated in the short term ST-2 category are considered to have internal fund generation and access to alternative sources of funds.
the strong capacity for timely repayment of obligations. Banks rated in this category are characterized with commendable position in terms of liquidity,
To declare and approve stock dividend for the year ended 31st December, 2011 as recommended by the Board of Directors.
All Members are requested to attend the meeting on the date, time and place as mentioned above. Dated : Dhaka, May 14, 2012 By the order of the Board (A. F. M. Nizamul Islam Chowdhury) Group Company Secretary
Notes: a. b. c. d.
The Board of Directors has recommended 20% stock dividend for the year ended 31st December 2011 subject to approval in the 13th Annual General Meeting. meeting and qualify for stock dividend. register of members of the Company or in the Depository Register on record date are eligible to attend the A member eligible to attend and vote at the 13th Annual General Meeting (AGM) may appoint a proxy to deposited at the Registered Office at least 48 hours before the meeting. Admission in the Venue of AGM will be allowed on production of the Attendance Slip. attend and vote on his/her behalf. The Proxy form duly stamped & signed by the member must be 10th May, 2012 has been scheduled as Record Date. The Shareholders whose name appeared in the
Division of Supreme Court of Bangladesh.

N.B. :
Appeal as per leave granting order under date 12.02.2005 passed in CPLA no. 942-946 by the Appellate
The agenda as to election/re-election of Directors of the Bank is not included till disposal of Civil
13
ANNUAL REPORT 2011
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ANNUAL REPORT 2011
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17
ANNUAL REPORT 2011
Message from Managing Director & CEO
We have successfully completed the year 2011 which was indeed a challenging year for the financial sector home and abroad. In Bangladesh the year was a mixed bag of success and challenges. The phenomenal growth in export, bumper harvests and increased revenue collection in the form of tax have made GDP growth ticking to a desired level, while attempts to solve energy crisis with high cost of generation options resulted in fiscal imbalances. Persistent instability in stock market, rapid depreciation of Taka against Dollar, a growing subsidy bill in the budget and difficulties in mobilizing foreign financing appear to cast dark shadow over economic prospects in the current fiscal year. The world economy is still a long way from recovery and huge uncertainty exists over the scope of the emerging world to generate self sustaining growth. The world economic outlook is darker to-day than it appeared before and economists feel recovery will remain feeble and advanced economies will feel the pressure.
Against above background we in Standard Bank Limited have achieved outstanding growth in terms of profit, loans and advances and deposits. We have managed our balance sheet with better ratios and throughout the last year we focused on core banking business. In line with our vision we put in constant efforts to increase the shareholders value and remain as compliant organization.
In the year 2011, our business continued to grow in all areas of operation. And we have achieved significant progress in terms of our network expansion and increased investments. Despite liquidity crisis in the last quarter of the year under review, we have been able to retain our share in a very competitive market. We believe we are moving in right direction with right strategies.The financial statements of the Bank that are attached herewith in the Annual Report provide us a summary of our activities and truly present Banks state of health. Some of our key initiatives such as improving the quality of assets, enhancing the value of our Retail, SME, card business and leveraging the technological potential have contributed immensely. The Bank is now well positioned to take full advantage of new business opportunities. In order to reach strategic locations with business potential, we have expanded our network of branches and opened as many as 68 branches. We also strengthened our overseas connections to mobilize remittance. We understand that Islamic Banking has a big market and sizable business opportunities exist in Bangladesh. We have increased number of separate desks for those who are interested in purely shariah based transactions. During the year 2011, the Bank has made operating profit of Tk 2869 million compared to TK 2771 million in the year 2010 registering a growth of 4%. Total assets have increased from Tk 66596 million to Tk 74953 million which accounts for 13% growth in 12 month period. This indicates that our market share has increased and further proves our ability to compete in a market which is full of challenges. Our growth in deposit and loans and advances is quite significant and it grew by 11.66% and 6.91% respectively. We have exercised due diligence while meeting the requirement of credit because of liquidity crunch. In fact the market remained fiercely competitive. Throughout the year we have moved slowly but carefully and tried to strike a balance between assets and liabilities to remain compliant with Bangladesh Bank. We worked with strong monitoring system for administering credit portfolios and tried to reduce the level of bad and doubtful loans. This has resulted in reduction of provision. Strong recovery drive all over the year has contributed in reducing classified loans to 2.19%. We have always followed the guidelines of Bangladesh Bank in making adequate provision against all kinds of loans and advances. The Bank stands adequately capitalized and the ratio stands at 11.39% against risk weighted assets. Last year we have carried out analysis of different risk factors and risk absorbing capacity to examine Banks resilience in terms of capital base. We have laid strong emphasis in trade related business during the last year. Consequently we improved our import and export business and registered growth in both the areas. We have been very successful in mobilizing inward foreign remittance from abroad. Our own exchange houses in UK and USA have made big contribution in collecting and remittimg fund to Bangladesh. Total volume of remittance stands at Tk.1771 million for the year 2011.
Corporate lending is our main avenue for generating most of the profits. But our focus on Retail, SME and Card business continued. Gradually we have deepened our stake in these areas. While recognizing the importance of agriculture in our GDP, we have never lost sight of our farmers. We have tried to lend to the farmers through various initiatives. Crop financing and agrobased projects received our highest priority. We have undertaken different pilot schemes to alleviate poverty and extend access to Banks fund for the marginally poor people.
As we look forward, we can see that the Bank is well structured and better positioned to cater to the emerging needs of the market. We want to do business in fully transparent manner after following all ethical standards. Customers satisfaction is our core strategy and we want to serve them at very competitive price. We recognize that a banks greatest asset is its human resources. Every year we recruit best talents from the market in management cadre through competitive examination. We try to retain them by way of offering right compensation package and enough training in different skilled sets. Incentive bonus has been disbursed in line with employees performance and banks total profitability.
We live in a society and we strongly believe that we have responsibility to that society. We undertake many welfare activities for the benefit of disadvantage group. We also distribute scholarship and financial help to the meritorious students particularly in urban areas. Finally I should say we are grateful to our regulators, respected shareholders, Security Exchange Commission, Dhaka and Chittagong Stock Exchange, other stakeholders and valued customers for their continued support. We also express our gratitude to our Board in general and Honourable Chairman in particular who have put in relentless efforts in formulating banks strategies and providing us with invaluable suggestions on all important matters. May Allah bless us all.
S. A. Farooqui
Managing Director & CEO
S. A. Farooqui Managing Director & CEO

ANNUAL REPORT 2011
View of General Meeting
Directors' Report
Dear Shareholders As Salamu Alaikum
On behalf of the Board of Directors of Standard Bank Limited, I have the pleasure to present the Annual Report and Financial Statement of the Bank for the year ending on December 31, 2011 along with Auditors Report at the 13th AGM. A brief overview of World Economy and Bangladesh Economy has also been provided in the report. It would reveal from the report that we have risen to the challenge, with record achievements amidst stiff competition among different Banks. Global Economy In 2011, the world economy, by and large slowed down while a few emerging economies experienced robust growth. Latest World Bank forecast has put the global economy to grow at 2.5 percent in 2012 against estimated growth of 4.3 percent in 2011. The forecast also indicated that recovery from global recession would not be uniform. Advanced economies would expand just 1.4 percent in 2012, while euro zone might shrink 0.3 percent. Financial crisis and debt burden existed mainly in Europe and such scenario is unlikely to be over any time soon. Against this background, policy makers in Europe and ths US are trying to strike a judicious balance between support for the economy and medium term financial consolidation and that volatility in global financial markets do not escalate.
A partial view of 12th.Annual General Meeting of Standard Bank Ltd., Honble Chairman of the Board Mr. Kazi Akramuddin Ahmed is seen addressing the honourable shareholders.
A partial view of 12th.Annual General Meeting of the Bank. Honble Shareholders of the Bank are seen.
European Central Bank (ECB) has committed to continue to intervene strongly to maintain stability in sovereign debt markets. Leaders of eurozone countries further indicated to stand by their commitments to preserve trust in national policies and the euro. Given growing downside risks to the US activity the Federal Reserve should stand ready to deploy more conventional support along with short term and medium term fiscal consolidation. On global economy prospects IMF just concluded that recovery is in line with its expectation but high debt levels in the market, rising oil prices are key risks ahead. There is not great deal of room for maneuver and no room for policy mistakes at highest level of the advanced and emergent economies. However, achieving this will require that policy makers tackle difficult political economy challenges and undertake collaborative responses with all stakeholders. Bangladesh Economy Since last two decades, Bangladesh has grown consistently despite political upheavals and natural calamities. The poverty level has been halved and income inequality is gradually declining. Other social indices are also improving, immunization and nutrition is better than Indias. Exports are growing from strength to strength and include apparels, leather, ship building, pharmaceuticals and jute and jute goods etc. We have also noticed over a period that destination of our export covered new countries all around the world. Bangladesh is still regarded as one of the lowest cost countries despite inflationary pressures. Flexible exchange rate helped our export trade which is now gaining 3 percent share of GDP and per capita income of $800 means the country has massive potential for increased affluence.
A partial view of 27th. Extra Ordinary General Meeting (EGM) of Standard Bank Ltd., Honble Chairman of the Board Mr. Kazi Akramuddin Ahmed is seen addressing the honourable shareholders.
During the year 2011, Bangladesh economy experienced positive trend with real GDP growth of 6.7 percent compared to 6.1 percent in FY 2010. The momentum was due mainly to export growth, steady remittance, increased output in agriculture and services sector. Industrial sector grew by 8.2 percent, service by 6.6 percent, agriculture by 5.0 percent compared to 6.5 percent, 6.5 percent and 5.2 percent respectively in FY2010. The expansion was broad based and covered most of the important sectors. Exports grew at 41.7 percent in FY2011 compared to 4.2 percent growth in 2010. Imports also grew at 41.8 percent in FY2011 compared to 5.5 percent growth in FY2010. At current market price, total GDP of Bangladesh in FY2011 was estimated at Taka 7875 billion compared to Taka 6924 billion
ANNUAL REPORT 2011
Directors' Report
in FY2010 which represents a growth of 13.4 percent. In FY2011, the countrys real per capita GDP increased by 5.3 percent. Government and Bangladesh Bank adopted fiscal policies and strategies for achieving higher growth, reduction of poverty and unemployment and widening the net for social security. Inflationary pressure was a main concern for the Government and to reduce the same, Bangladesh Bank raised cash reserve ratio (CRR) and statutory liquidity ratio (SLR) for banks by 0.5 percent to 6 percent and 19 percent respectively in December 2010. The economy has been facing a few challenges during the current fiscal year and it is apprehended that there might be shortfall in achieving 7percent growth target. Rising inflation, increased Government borrowing to finance subsidies, reduced level of foreign aid and pressure on balance of payments are the main challenges that Government need to give due importance before further escalation. Mention may be made that Government and Bangladesh Bank are evaluating countrys economic performance at regular interval and adjusting policies to remain on the right track.
According to Bangladesh Bank, realization of GDP growth expectations for 2012 and beyond will depend mainly on continuing stable domestic growth and steady external demand and budget spending on infrastructure investments including power. Tax receipts have improved but need further broadening of the tax base and rationalization in direct tax collections. STANDARD BANK LTD (SBL) The Standard Bank Limited witnessed record achievement in its business performance during the year 2011. The Bank was incorporated as a Public Limited Company on May 11, 1999 under the Companies Act, 1994 and it achieved satisfactory progress from its commercial operation since June 03, 1999. SBL introduced several attractive products and services and extended loans and credits to
Mr. S.S Nizamuddin Ahmed, Chairman Audit Committee is seen presiding over the 34th. meeting of the Audit Committee.
different sectors of the economy. Besides, the Bank has already introduced real time on-line banking and it is now fully automated. Through all these myriad activities, SBL has created a positive impact in the banking sector of the country. OBJECTIVE OF THE BANK The motto of the Standard Bank Limited is to explore new innovative banking in an automated and computerized environment. It aims at providing one stop service and prepare itself to face the new challenges of globalization and 21st century. One of the main objectives of the Bank is to be a provider of quality products and services at a competitive price. The Bank also caters to the needs of its corporate clients and provides a comprehensive range of financial services to national and multinational companies. The dimension of responsible corporate behavior of the Bank is the maintenance of ethical standard in its functioning. Management Human Resources Division of Standard Bank Limited plays a very vital role in formulating policies, developing corporate practice and culture. The Bank utilizes the existing skilled manpower and also brings in the best talents through a prudent recruitment policy in the right direction to fulfill the mission and vision of the bank. Proper recruitment policy lays the solid foundation for establishment of an institution at the initial stage and sustainable growth in future. The division has been performing the job of recruitment from the very inception of the institution maintaining 100% clarity and transparency under a well-regulated system to establish a free and fair selection of its team under the able guidance of the executives and officers.
Honble Chairman Mr. Kazi Akramuddin Ahmed is seen presiding over the 180th meeting of the Board of Directors.
Total number of Executives, Officers and Staff in the bank is 1046 as on December end 2011. Out of them male employees and female employees are 889 and 157 respectively. They are relentlessly
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working in a team with a vision to serve the bank with devotion and dedication to uphold its glorious image. Training Research and Planning The training institute of the Bank has been set up with a view to develop human resources (work force) and to equip them with required knowledge and skills to perform their jobs in a befitting manner. Training is regarded as a major catalyst for bringing about required changes in human behaviour. To bring about such changes for job performance, proper attitude and values are very critical and challenging task. Today, we live in a knowledge based society where training is an exposure for learning. In developing professional proficiency, there is no alternative to training. Attaining "Competence" and "Competitiveness" is a bench mark for survival. Professional knowledge and skill can be disseminated and instilled by the professionals only. Achieving professionalism is only possible through continuous care on the job practices. Our service dimension has undergone tremendous changes due to the emergence of free market economy, unprecedented innovations of information technology and E-Commerce. Accordingly, the Training Institute is responsible for planning and designing training courses, developing appropriate contents, training materials, tools and techniques for imparting training effectively. And it prepares course calendar for the year to conduct training courses on the basis of organizational needs and outlook. Setting an example of excellence and standard in banking in Bangladesh is our management objective. That dream has been set to be taken by our heart by each and every employee of the Bank. All officials sincerely believe in it and start accomplishing the same.
The Institute also undertakes Research & Planning for analytical review of bank's operational achievement and performances and sets strategy to sustain and improve the same by building up public image and prestige.
Honble Chairman of the Bank Mr. Kazi Akramuddin Ahmed is seen presiding over the 2nd. Meeting of the Board of Directors of SBL Capital Management Limited.
To make our bank a leading bank in Bangladesh, massive expansion program has been undertaken consequent upon which a large number of personnel of all categories such as, direct officers, Assistant-officers and cashiers have been recruited. Total number of new recruits would be about two hundred for whom training institute has designed special training courses with specific training needs such as 1) Foundation Course on Banking Law & Practices for probationary Officers, 2) General Banking for Assistant Officers, 3) General Banking with emphasis on Functions of cash Department, 4) Bankers Advances for credit officers, 5) Foreign Trade & Foreign Exchange, 6) Risk Management in Banking and 7) Project Appraisal, Financing and Management etc vis-a-vis arrangement of workshops on different banking issues / topics. The designed courses aim to increase professional knowledge and skills, develop proper service attitude, motivation and mindset to help adopt appropriate technology to achieve excellence in job functions.
Information Technology Division
Mr. S.A.M Hossain, Chairman Executive Committee is seen presiding over the 90th Meeting of the Executive Committee.
Standard Bank Limited has a comprehensive business automation plan to provide cost effective sophisticated electronic services to its customers. It enhances customer satisfaction with the ultimate result of increased number of more loyal and trusted customers at lower cost. Instead of providing the service through bank counter, customers are encouraged to enjoy the service through various electronic delivery channels like ATM, POS, Internet Banking, Kiosk, BEFTN etc. During 2011, SBL IT had done following projects successfully.
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(i) Standard bank is one of the first few banks to go live successfully during the implementation period of BEFTN. After that, now the customers have the opportunity to transfer their fund safely and within the shortest possible time. This paperless payment system has also brought in significant changes in the interbank fund transfer mechanism which will translate increased efficiency to manage the banks payables. It can be mentioned here that SBL already launched the distribution of inward foreign remittance through BEFTN besides transferring dividend warrant to the shareholders. SBL Kiosk Banking is a banking service offered to customers within the branch. This service offers customers the flexibility to conduct their banking transactions via Kiosk during branch business hours. After overwhelming responses at Mirpur branch, SBL will deploy more units in different branches (Kotalipara, Ring Road, Matuail, Ekoria & Progati Sharani Branch) for introducing smooth payments of DESCO, WASA, BTCL, GAS bills, Credit Card bills etc for the customers. SBL Kiosk (Bills pay) System Electronic Fund Transfer through BEFTN
(ii)
(iii) E-Recruitment
SBL is implementing E-recruitment System where online advertisement and application submission will be done through Internet. The system will provide a significant improvement in our recruitment functions by eliminating many of our manual processes such as multi posting and management activities till final selection. For the year 2011, major recruitment of Probationary Senior Officers has been done by the above system which also incorporates with CV-Bank data base that can help the bank to hire professional executives from time to time.
Mr. Mohammed Abdul Aziz, Chairman Green Banking Committee is seen presiding over the 2nd. Meeting of the Green Banking Committee.
(iv) AGM Attendance Management
(v)
As part of its ongoing effort to improve the shareholders services, SBL has opted for the use of an electronic registation for its Annual General Meeting. The software incorporates with shareholders attendance management with BO or Proxy Accounts in quickest possible time. SBL IT recently developed a CIB Online System as per requirement of Bangladesh Bank (BB) to create a disciplined environment for borrowing; the automated CIB service provides credit related information for prospective and existing borrowers. With this improved and efficient system, risk management will be more effective. Now we can furnish credit information from CIB database 24 by 7 round the year; and BB can also access credit reports from CIB online. We have implemented Export-Import Module in most of the AD branches by which we will be able to reconcile all transactions in respective currencies and make the system more centrally controlled. We upgraded the old version of SWIFT Alliance Messenger with recent Version 6.0. In the year 2011, we inaugurated 10 new branches and also opened two own ATM Booths at different locations where we deployed new PCs and structured communication network with redundant link.
CIB online system
(vi) Export-Import Module Implementation:
(vii) SWIFT Version 6.0:
(viii) Ten new Branches have been added in SBL Network:

The Chairman of the Bank Mr. Kazi Akramuddin Ahmed is seen presiding over the Ist. Meeting of the Shariah Supervisory Committee of Standard Bank Limited.
ANNUAL REPORT 2011
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(ix) We already started technology based innovative banking services like Internet banking (soft launched). By using our secured I-Banking service anyone can check his/her account balance and print statement quite easily from anywhere around the world using internet. We have taken initiative for virtualization of our Test and Backup Servers at Datacenter which eventually reduce hardware maintenance costs because of a lower number of physical servers. By taking advantage of server virtualization we can easily improve the efficiency of our Data Center, as well as lower the total cost of ownership. Beside Server Server Virtualization SBL I-Banking
(x)
Green banking Initiative by SBL IT:
For introducing the E-services like I-Banking, E-recruitment and CIB Online, we reduced most of the paperwork as well as make the internal communication faster and documented. consumption. We already introduced in-house E-mail Facility under SBL Domain. We already
launched new website which provided up-to-date and detailed information about Standard Bank
Virtualization and blade server installation at Datacenter we have reduced significant amount of power
Limited and its wide range of products and services. The users can view or download updated financial footprint of the customers by ensuring they do not have to resort to physical statements or travel to their branches. Sharing electronic files, voice mail and e-mail are in practice instead of paper memos.
reports online. Other platforms like Internet Banking allow e-statement. This reduces the carbon
Honble Chairman of the Bank Mr. Kazi Akramuddin Ahmed is seen amongst the Directors on the Annual Managers Conference-2011 of Standard Bank Limited on the ceremony of awarding crest to the successful Branch Managers
Finally we can say, with the success of our automation, we will able to develop new products and new delivery channels, to reach new customers and create the opportunity for greater value addition. Our IT objective is to achieve maximum use of tried and tested technology, keeping on improving our offer to the customers. It is time for business and technology to work more intimately in achieving banking goal for products and services. Visa Credit Card and Debit/ATM Card Plastic money is no longer a new phenomenon in Bangladesh. With due encouragement from Bangladesh Bank, most of the banks are slowly moving to alternative channels to avoid cash in financial transactions across the counter. Credit card is one through which our customers can simply pay for goods and services without involving cash. Thus it has become a primary product in our banking services as a mode of payment. Standard Bank has always focused on customers emerging needs and introduction of credit card is a step towards catering to such requirement. Against this background, the Bank has taken associate membership of Visa International through NCCBL. Visa is a global player in the payment industry and controls 60% of total market share in the world. With Visas license we have successfully launched VISA credit card for local and international usage. Since August 2010, our issued cards are being accepted across the world on line real time basis with authorization from our card centre. At this point we shall give below a summary of our performance for the year 2011.
Honble Chairman Mr. Kazi Akramuddin Ahmed is seen presiding over the 184th meeting of the Board of Directors of Standard Bank Ltd.
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No of Cards issued Total income Total outstanding in credit card Interest income 1041 Tk. 5.33cr
Interchange fee Card fee
Tk. 86.11lac Tk. 6.93lac Tk. 6.93lac
Tk.116.41lac
Cash advance fee Late payment Excess limit
Tk. 6.84lac Tk. 1.56lac
Tk. 7.77lac
Card business is a number game. The larger the card base bigger will be our profit volume. But we are yet to create minimum base that is required to run the business profitably. Since it is purely a retail business, scope for income is huge if risk is managed properly. Our main focus is to increase the card base so that we can be at a decent level with our competitors. We would expect that all our borrowers should avail our card facility against their submitted collateral. This will minimize our risk and at the same time our borrowers need not approach other banks for this product. We may also mention here that our network of branches is our main outlet and through which we can rope in customers for corporate and retail business including card.
Honble Chairman Mr. Kazi Akramuddin Ahmed together with the President of FBCCI Mr. A.K Azad and others are seen at the counter of Standard Bank Ltd. in the 5th.FBCCI SME FAIR-2011 at Bangabandhu International Conference Center.
ATM/Debit card
Last but not the least we have introduced a few features to make our card attractive to our customers and some more like cheque facility and balance transfer are already in pipe line. Alert service against transactions and billing information are being delivered through SMS via mobile phones.
Customer satisfaction is the cornerstone of our business strategy. In order to provide banking services regardless of time and location, we have introduced our own Standard Bank Debit card. We have also installed 5 ATMs at our branches and another 10 will be installed this year. To cover maximum area we have entered into a sharing agreement with DBBL and Brac Bank so that our customers can access to their ATMs which are located all over Bangladesh. DBBL and Brac Bank have already installed over 2500 ATMs which are available for our customers 24hours a day and 7 days a week. In addition we have agreement with Q-cash network of more than 50 ATMs. We give below a snapshot of our performance in Debit card No of cards issued No of transactions in our own ATMs No of transactions in DBBL No of transactions in Brac
Honble Chairman of the Bank Mr. Kazi Akramuddin Ahmed is seen amongst the Directors on the Half yearly Managers Conference-2011 of Standard Bank Limited.
= 14,652 = 4,930
= 7,958
= 25,454 = Tk. 151,920,000.00
Total amount withdrawn from our own ATM Total amount withdrawn from DBBL Total amount withdrawn from Brac
= Tk. 91,610,500.00
= Tk. 34,594,200.00
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We need to increase our card base for the debit card so that our customers are encouraged to use ATMs rather than cash counters. This will create extra capacity for us at branch level. Performance of SBL Capital Management Limited (SCML) After the formation of SBL Capital Management Limited (SCML), the Merchant Banking Subsidiary of the Bank, all operations of the erstwhile Merchant Banking Wing (MBW) were taken over by this new Subsidiary Company with effect from January 2011. The Authorized Capital and Paid up Capital of SCML was Tk. 500.00 Crore (Taka Five Hundred Crore) and Tk. 150.00 Crore (Taka One Hundred Fifty Crore) respectively. Mudaraba Term Deposit Receipt Account (MTDR) 08. Mudaraba Monthly Savings Scheme (MMSS) 09. Mudaraba Hajj Savings Scheme (MHSS)
Investment products:
01. Bai-Murabaha 02. Bai-Muajjal 03. Bai-Salam 04. Hire Purchase under Shirkatul Melk (HPSM) Foreign Trade & Foreign Exchange: 01. Import 02. Export 03. Remittance
Due to bearish market the ruling market price as well as trade volume registered significant fall in 2011 and as a result the volume of operation as well as the operating profit of SCML was much low in comparison to that of 2010. A number of factors were responsible for this downslide of the market namely, (a) lack of confidence (b) short term profit motive of a large group of investors (c) fund constraint of banking sector due to various reasons (d) tied up of huge individual and institutional funds for placement shares (e) reluctance of a few institutional investors i. e. insurance sector, mutual funds etc. to increase exposure in capital market (f) delayed declaration by the regulatory bodies on single party exposure limit in capital market by subsidiary companies (g) lack of coordination in action amongst the regulatory bodies regarding incentives declared by the govt. as well as clarification regarding declared incentives (h) unscrupulous actions by a section of directors of a number of listed companies ( i.e. disposal of shares without maintaining the minimum required number of shares for retaining the directorship in the company ) were important. In order to bring back stability in the capital market, the regulatory bodies announced a three stage package namely (a) short term: for immediate implementation (b) medium term: within 3 months and (c) long term: within 4-6 months time frames. The measures declared are in the process of implementation phase by phase. We have been anxiously waiting to the see the outcome of these measures. We expect a better market scenario in future. Islami banking
In our above 02(two) Islami Banking Windows, we are providing all of the above products, services and facilities to our clients and we are receiving very good response from them.
Our vision of Islami Banking is to open more Islami Banking Windows/Branches soon and to convert the whole Bank into Islami Banking from conventional Banking by obtaining permission from Bangladesh Bank. Capital Management Capital:
In order to strengthen the Banks capital structure so that CAR (Capital Adequacy Ratio) is remained at appropriate level so as to lay a strong foundation for sustainable, fast, and healthy development of businesses of the bank. The Bank maintains some key principles for its capital management to operate smooth banking activities. These principles are to meet regulatory requirement, maintain proper CAR level, support implementation of development strategy planning, optimize asset structure, allocate economic capital reasonably, realize maximum return on capital, and guarantee sustainable and healthy development of bank. Overall Capital position as on 30.12.2011 as follows: on 14.11.2011.
For clients full satisfaction Vis--vis our sponsors, we have introduced Islamic Banking alongside our conventional banking at the end of the year 2009. Currently we are operating Islamic Banking through two Windows at Topkhana Road Branch, Dhaka & Agrabad Branch, Chittagong under a separate high profile Islami Banking Software which is known as HIKMA. We are following and maintaining properly the Guidelines for Islamic Banking issued by Bangladesh Bank. We are also maintaining separate CRR/SLR with Bangladesh Bank for our Islamic Banking. Standard Bank Limited has formed Shariah Supervisory Committee for its Islamic Banking consisting of 5 (five) honorable members including some eminent Islamic scholars of the country. We are doing our Islamic Banking activities as per Islamic Shariah. We are offering the following Deposit, Investment, Foreign Trade & Foreign Exchange products to our clients under Islamic Banking: Deposit products:
Banks Authorized Capital was enhanced from Tk. 880.00 crore to Tk. 1500.00 crore in 27th EGM The Paid-up Capital of the Bank stood at Tk. 406.13 crore in 2011. The Statutory Reserve stood at Tk. 199.52 crore.
Capital Adequacy:
The total equity capital & reserve of the Bank at the end of the 2011 was Tk. 687.05 crore.
In terms of Bangladesh Banks revised Basel-II Guidelines, the Minimum Capital Requirement (MCR) from January to June 2011 was 9% of Risk Weighted Assets (RWA) and from July-2011 to onward, the MCR was fixed at 10% of RWA.
01. Al-Wadiah Current Account 02. Mudaraba Savings Account(MSA) 03. Mudaraba Special Notice Deposit Account (MSND) 04. Foreign Currency Account 05. NFCD Account 06. RFCD Account 07.
The Tier-1 Capital of SBL stood at Tk.695.64 crore which is increased by Tk. 37.96 crore from previous year. MCR needed to be covered 50% from Tier-1 Capital. It includes the equity such as Paid-up Capital, Reserve & Retained Earnings.
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Besides Tier-II, another part of the Capital Structure stood at Tk.74.57 crore at the end of 2011 which includes General Provision on unclassified loans & advances. Total Capital increased by Tk. 133.13 crore during the year 2011. Capital Adequacy Ratio is measured by the ratio of the total Capital to the Risk weighted asset. Capital Adequacy Ratio (CAR) has stood at 11.39% at the end of 2011, where CAR requirement was 10%. Capital Planning: Credit risk: The goal of credit risk management is to maximize a bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters. The Bank needs to manage the credit risk inherent in the entire portfolio as well as the risk in individual credits or transactions. The Bank identifies the key point in effective revenue and receivables management and intelligently and efficiently manages customer credit lines. In order to minimize exposure to bad debt, overmarkets and customers hinges on the ability to quickly and easily make well informed credit decisions and set appropriate lines of credit. Early Alert System: reserving, and bankrupties, The Bank is very much watchful to observe insight into customer financial strength, credit score history and changing payment patterns. Likewise, the ability to penetrate new
The Bank has a specific Risk based Capital Planning policy. The banks capital management framework serves to ensure that the bank and its principal subsidiaries are adequately capitalized in line with the risk profile, regulatory requirements, economic capital standards and target ratios, at both bank and subsidiary level. The banks objectives on capital planning are to:
maintain sufficient capital resources to meet minimum regulatory capital requirements set by maintain sufficient capital resources to support the banks business & risk appetite;
rating; Bangladesh Bank in accordance with Basel II requirements;
cover unexpected loss within the banks target confidence levels and support the banks credit ensure to maintain buffer capital as excess of minimum requirements.
on economic and regulatory capital; and
The Bank has ensured an efficient Early Alert System by addressing potential weaknesses of material
nature of slow and sticky accounts. It ensures monitoring, supervision and close attention by prospect of being downgraded in Credit Grading within the next twelve months.
allocate capital to business to support the banks strategic objectives, including optimizing returns
In future the Bank has a plan to enhance both the authorized capital & paid-up capital of the Bank to cope with financial growth and regulatory requirement. Besides the Bank continued to distribute stock dividend to enhance core capital in Tier-I. In the EGM it was also resolved that Bank will enrich its TierII capital for Tk. 200.00 crore by issuing debt instrument (Subordinate Bond) from capital market. Risk Management Risk management is the core issue in operating structure of a Bank. The Bank seeks to limit adverse variations in earnings and capital by managing risk exposures within agreed levels of risk appetite. Effective risk management is fundamental to the business activities of the Bank. While the Bank remains committed to increasing shareholders value by developing and increasing business within banks pre-determined risk appetite, The Bank is also careful about achieving objectives in line with the interests of all stakeholders. The Bank seeks to achieve an appropriate balance between risk and reward in the business, and continues to build and enhance the risk management capabilities that assist in delivering banks growth plans in a controlled environment.
management. If these weaknesses are left uncorrected, they may result in deterioration of the Early identification, prompt reporting and proactive management of Early Alert Accounts are prime Limit and Restrict the NPLs: credit responsibilities of all levels and this issue is undertaken on a continuous basis.
repayment prospects for the asset or in the Banks credit position at some future date with a likely
To manage the total credit portfolios the Bank closely monitor past due account, default account and other sticky accounts.
Taking into consideration of potential future changes in economic conditions when assessing individual credits and their credit portfolios, the Bank has assessed their credit risk exposures under stressful conditions. Special Monitoring on Top large borrowers: As the Bank has some potential large borrowers having different types of facilities, where the portfolios are concentrated into some limited entities, specific process to intensively monitor those accounts is regularly followed. Monitoring the value of mortgaged collateral: Most of the collateral held in the Bank are Lands, Buildings and Real Estate. It is very much important to monitor the fall of value of Real Estate so that total coverage always kept below the exposure limit. Watch on Negative shift in the NPLs categories: minimum. It is a regular course of action of credit administration to uphold the Asset Quality of total credit portfolios. The Bank has taken some extra measures to keep its Non Performing Loans (NPL) at
The Banks risk management processes have been proved effective, despite a tough economic effectively managing the portfolios in terms of risk worthiness.
environment. The Management remained closely involved in all risk management initiatives, which
have focused particularly on preserving appropriate levels of asset quality, liquidity and capital by
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Focus on particular sector concentration: As the economy of the country concentrated on RMG sector, the Banks credit has a major share on Garments and Textiles. Accordingly the Bank is very much aware on its involvements in this particular sector, efforts are taken to limit its risk derived from any adverse impact on this sector. Liquidity risk: During the year of 2011 it was widely rumored in financial sector that the banks have been suffering Liquidity Risk. Despite contraction of Monetary Policy, the Bank has efficiently managed its liquidity position in line with central banks constraint. However, the Bank is aware that Liquidity risk arises when the bank, despite being solvent, cannot maintain or generate sufficient cash resources to meet its payment obligations as they fall due, or can only do so at materially disadvantageous terms. planning, maintenance of liquid investments and focusing on more stable funding sources. Market risk: foreign currency. Even in case where spot or forward positions in individual currencies are balanced the maturity pattern of forward transactions may produce mismatches. Operational risk: Operational Risk, which is intrinsic to the bank in all its material products, activities, processes and systems, is emerging as an important component of the enterprise-wide risk management system. The operational risk refers to the risk of loss resulting from inadequate or failed internal processes, people and IT system, or from external events. It includes legal risk but excludes strategic and reputation risk. Recognizing the importance of Operational Risk Management, the Bank has maintained a Comprehensive and effective Operational Risk Management Policy. Standard Internal Control System and Risk based Branch inspection process are in place. Besides Core Banking Database Management System and a separate Disaster Recovery centre is established to limit all possible risk in business operation. Risk appetite & Business Appetite: Risk appetite is the maximum level of residual risk that the bank is preparing to accept to deliver its throughout the bank and to external stakeholders. The Bank tries to establish its parameters for risk appetite by: conditions, for the bank and
The Banks objective of liquidity management is to ensure adequate liquidity without affecting the
profitability. In tune with this, the Bank ensures adequate liquidity at all times through systematic fund
business objectives. The bank has developed a robust framework that is used to articulate risk appetite
The Bank has well-established framework for Market Risk management with the Asset Liability
Management Policy and the Treasury Policy forming the fulcrum for procedures, processes and structure. It has a major objective of protecting the banks net interest income in the short run and and liabilities.
market value of the equity in the long run for enhancing shareholders wealth. The important aspect of the Market Risk includes liquidity management, interest rate risk management and the pricing of assets Interest Rate Risk:
Providing strategic leadership and guidance from Senior Management; Reviewing and approving annual budgets and forecasts, under both normal and stressed Regularly reviewing and monitoring its risk performance in quarterly basis.
The Banks Board fixed the Yearly Business Targets and Budget, which delegates the determination of risk appetite to the senior management, where it has to ensure that risk appetite is in line with banks strategy and the banks desired balance between risk and reward. Market Disclosure:
Changes in interest rate affect earnings, value of assets, liability off-balance sheet items and cash flow. Hence, in addressing interest rate risk the Bank has been very watchful to maintain earnings, improve the capability, ability to absorb potential loss and to ensure the adequacy of the compensation received for the risk taken and affect risk return trade-off. Equity Price Risk:
Standard Bank Limited has developed a Market Disclosure framework in line with Risk Based Capital Adequacy guideline of Bangladesh Bank to be published in public annually. The framework comprises the following components: Risk (8) Operational Risk. (1) Scope of Application (2) Capital Structure (3) Capital Adequacy (4) Credit Risk (5) Equities: A detail of Market Disclosures on Risk Based Capital (Basel-II) as on 30.12.2011 is shown below: Calculation of Risk Based Capital Adequacy (Basel II): The adoption of Basel II has boosted good Risk Management practices and good corporate governance in banks. The objective of risk management is not to prohibit or prevent risk taking activity,
The measurement of equity risk should capture the risk exposure to price movements in the overall equity market (e.g. a market index), specific sectors of the equity market (e.g. industry sectors or cyclical and non-cyclical sectors), and individual equity issues where appropriate. The Bank has been very much conscious on price volatility during 2011 so that it can prevent any excessive investment in risky portfolios. Foreign Exchange Risk: Foreign exchange risk is the risk that a bank may suffer loss as a result of adverse exchange rate movement during a period in which it has an open position, either spot or forward or both in same
disclosures for banking book positions (6) Interest rate risk in the Banking Book (IRRBB) (7) Market
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but to ensure that the risks are consciously taken with full knowledge, clear purpose and understanding so that it can be measured and mitigated. From March-2011 the Bank prepares Risk Based Capital adequacy statement on Solo basis as well as on consolidated basis. As per Bangladesh Bank guidelines the quarterly Risk Based Capital adequacy position are given below: Disclosures on Risk Based Capital (Basel-II) as on 30.12.2011 (a) (b) (c) Quantitative Disclosure (d) Qualitative Disclosure (a) (a) Scope of Application b. Tier-1 (Core Capital ) SOLO Consolidated 199.52 81.40 406.13
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9
Fully Paid-up Capital/Capital Lien with BB Statutory Reserve General Reserve Non-repayable Share premium account Retained Earnings Minority interest in Subsidiaries Dividend Equalization Account
199.52 89.99
406.13
Qualitative Disclosure
The Revised Risk Based Capital Adequacy (RBCA) framework which is called Basel-II guideline issued by Bangladesh Bank in December2010 duly applies to Standard Bank Limited. Standard Bank Limited prepared its RBCA report on Solo Basis as well as Consolidated Basis where three (03) subsidiaries belongs to Standard Bank Ltd. No incidence occurred which may cause for imposing any regulatory restriction or impediment for transferring fund with in the Standard Bank group. No Capital deficiency in solo or consolidated assessment. Regulatory capital will be categorized into three tiers: Tier 1, Tier 2, and Tier 3. Tier 1 capital: Tier 1 capital called Core Capital comprises of highest quality of capital elements that consists of : a) Paid up capital b) Non-repayable share premium account c) Statutory reserve d) General reserve e) Retained earnings f) Minority interest in subsidiaries g) Non-cumulative irredeemable preference shares h) Dividend equalization account Tier 2 capital: Tier 2 capital called Supplementary Capital and consists of: a) General provision (on & off Balance sheet) b) Revaluation reserves Revaluation reserve for fixed assets Revaluation reserve for securities 4 Revaluation reserve for equity instrument c) All other preference shares d) Subordinated debt Tier 3 capital: Tier 3 capital called Additional Supplementary Capital, consists of short-term subordinated debt (original maturity less than or equal to five years but greater than or equal to two years). The calculation of Tier 1 capital, Tier 2 capital, and Tier 3 capital shall be subject to the following conditions: a) The amount of Tier 2 capital is not exceeded the limited to 100% of Tier 1 capital. The quantitative disclosure of Capital Structure are as follows: (a) Scope of Application
1.10 Sub-Total: (1.1 to 1.8) 695.64 1.11 Book value of Goodwill
Other if any (if any item approved by BB)
Non-Cumulative irredeemable Preferences shares
Deductions from Tier-1 (Core Capital )
687.05
1.12 Shortfall in provisions required against classified assets 1.13 Shortfall in provisions required against investment in shares 1.14 Remaining deficit on account of revaluation of investment in 1.16 Any investment exceeding the approved limit under 1.18 Other if any section 26(2) of Bank company Act-1991 securities after netting off from any other surplus on the securities
1.15 Reciprocal crossholdings of bank capital/subordinated debt 1.17 Investment in Subsidiaries which are not consolidated 1.19 Sub-Total (1.11 to 1.18) 2.1 1.20 Total Eligible Tier-1 Capital (1.10-1.19) 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3
Revaluation Reserves for Securities up to 50% All other preference shares Subordinated debt Deductions if any
Assets Revaluation Reserves up to 50%
General Provision (Unclassified loans+off Balance Shee texposure)
c. Tier-2 (Supplementary Capital)
74.57
74.57
Revaluation Reserves for Equity instrument up to 10%
Other if any (if any item approved by BB) Sub-Total (2.1 to 2.7) 74.57 74.57
Quantitative Disclosure
2.10 Total Eligible Tier-2 Capital (2.8-2.9)
Total Eligible Capital (Tier-1+Tier-2)(1.20+2.10)
770.21
761.62
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Qualitative Disclosure (a) Adequate capital means enough capital to compensate with Banks risks profile. For assessing overall risk profile and a strategy for maintaining adequate capital, Bank has developed an Internal Capital Adequacy Assessment Process (ICAAP) for practicing better risk management techniques. Bank is strengthened and effectiveness its risk management process and internal control system in assessing and planning of economic capital against all risks. The strategic planning process critically analysis of banks current and future capital requirements. The strategic plan includes the banks capital needs, anticipated capital expenditures, desirable capital level, and external capital sources. Capital Requirement for Credit Risk Capital Requirement for Market Risk Capital Requirement for Operational Risk Total & Tier-1 Capital Ratio: For the consolidated group: Total CAR Tier-1 CAR For stand alone: Total CAR Tier-1 CAR (d) Credit Risk 632.38 3.94 36.88 Solo 631.28 27.98 38.06 (c) Capital Adequacy Bad/loss if remains past due/overdue for 9 months or beyond but not over 12 months and for 12 months and beyond respectively. In case any installment(s) or part of installment(s) of a Fixed Term Loan is not repaid within the due date, the amount of unpaid installment(s) will be termed as `defaulted installment'In case of Fixed Term Loans, which are repayable within maximum five years of time: If the amount of `defaulted installment' is equal to or more than the amount of installment(s) due within 6 months, the entire loan will be classified as ``Sub-standard''. If the amount of 'defaulted installment' is equal to or more than the amount of installment(s) due within 12 months, the entire loan will be classified as ''Doubtful. If the amount of 'defaulted installment' is equal to or more than the amount of installment(s) due within 18 months, the entire loan will be classified as ''Bad -Loss.'' In case of Fixed Term Loans, which are repayable in more than five years of time: If the amount of `defaulted installment' is equal to or more than the amount of installment(s) due within 12 months, the entire loan will be classified as 'Sub-standard.' If the amount of `defaulted installment ' is equal to or more than the amount of installment(s) due within 18 months, the entire loan will be classified as 'Doubtful'. If the amount of 'defaulted installment 'is equal to or more than the amount of installment(s) due within 24 months, the entire loan will be classified as 'Bad-Debt'. Description of approaches followed for specific and general allowances and statistical methods As per relevant Bangladesh bank guidelines, 1% to 5% provision is maintained against good/ standard loans, 5% provision is maintained against SMA loans, 20% provision is maintained against sub - standard loans, 50% provision is maintained against doubtful loans and 100% provision is maintained against bad / loss loans after deducting value of eligible security, if any, as per Bangladesh Bank guidelines. All interest is suspended /discontinued if the loan is identified as SMA or classified as sub -standard, doubtful or bad /loss. Discussion of the Bank's credit risk management policy The Board approves the credit policy keeping in view relevant Bangladesh Bank guidelines to ensure best practice in credit risk management and maintain quality of assets, Authorities are properly delegated ensuring check and balance in credit operation at every stage i,e screening , assessing risk, identification, management and mitigation of credit risk as well as monitoring, supervision and recovery of loans with provision for early monitoring, supervision and recovery of loans with provision for early warning system. The credit risk management division is independently operated for dedicated credit risk management, separate credit administration division for ensuring perfection of security coverage and credit monitoring and recovery division for monitoring and recovery of irregular loans. Besides, Internal control & compliance division independently assess quality of loans and compliance status of loans at least once in a year. Adequate provision is maintained against classified loans as per Bangladesh Bank guidelines. Status of loan portfolios is being regularly reported to the Board /Executive Committee.
Quantitative Disclosure (b) (c) (d) (e)
Consolidated
10.92% 9.85%
11.39% 10.28%
(a)
Definition of past due and impaired (for accounting purposes): A customer will be considered to be past due once a repayment becomes overdue. Past due and impaired: In instances in which a customer is past due and for whom the furnished collateral is insufficient to cover the outstanding amount will be considered to be both past due and impaired. Accordingly, impairment will be raised in line with the impairment policy for the relevant accounts. Past due but not impaired: In instances in which a customer is past due, but the customers facilities are fully collateralized, no impairment will be raised and the customer will be considered past due, but not impaired. Any Continuous Loan if not repaid/renewed within the fixed expiry date for repayment will be treated as past due/overdue from the following day of the expiry date. This loan will be classified as Sub-standard if it remains past due/overdue for 6 months or beyond but less than 9 months, as `Doubtful' if for 9 months or beyond but less than 12 months and as `Bad-Debt' if for 12months or beyond. Any Demand Loan if not repaid/rescheduled within the fixed expiry date for repayment will be treated as past due/overdue from the following day of the expiry date. This Loan will be classified as Sub-standard if it remains past due/overdue for 6 months or beyond but not over 9 months from the date of claim by the bank or from the date of creation of the forced loan; likewise the loan will be classified as "Doubtful' and
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Quantitative Disclosure (b) Total gross credit risk exposures broken down by major types of credit exposure: SOD/Quard against TDR Loans (General including Bai-Muajjal) Cash Credit/Murabaha House Building Loans Staff Loans Transport Loans LTR PAD Packing Credit (PC) Demand Loan Lease Finance/Izara Syndicate/Club Finance Visa Credit Card SME/SE CCS/Hire Purchase Bills purchased & discounted (Local & Foreign) Total Tk. in Crore 1121.45 1367.77 845.93 139.20 17.39 72.10 939.85 253.84 49.43 20.45 82.31 128.48 5.33 318.96 13.27 158.90 5534.68 Consumers credit scheme Small & Medium Enterprise Special program loan Others 18.78 318.95 16.31 284.47
(e)
Industrial loans: Agricultural Industries Textile Industries Food & Allied Industries Pharmaceuticals Industries Leather , Chemical & Cosmetics etc Cement & Ceramic Industries Service Industries Transport & Communication Industries Others
(c)
Geographical distribution of exposures, broken down in significant areas by major types of credit exposure: Urban: Dhaka Region Chittagong Region Sylhet Region Rajshahi Region Khulna Region Rangpur Region Barisal Region Total Rural: Dhaka Region Chittagong Region Sylhet Region Rajshahi Region Rangpur Region Barisal Region Khulna Region Outside Bangladesh Total Grand Total (urban+rural)
Tk. in Crore 3496.56 1612.29 25.96 54.07 207.49 31.33 10.86 5438.56 59.54 10.67 7.88 14.60 3.43 (f)
Residual contractual maturity breakdown of the whole portfolio broken down by major types of credit exposure: Payable On demand Up to one month Over one month but not more than three months Over three months but less than one year Over one year but less than five years Above five years By major industry or counterparty type : Amount of impaired loans and if available, past due loans, provided separately Corporate SME Consumer Financing Others Specific and general provisions; and Charges for specific allowances and chargeoffs during the period Gross Non performing Assets (NPAs)
Tk. in Crore 255.83 571.75 2640.74 1733.89 332.47 42.50 0.33 0.03 78.36 111.98 2.19%
17.30 1086.87 88.77 48.23 11.98 117.63 336.52 287.41 845.42
In Crore Taka
(g)
(d)
Industry or counterparty types distribution of exposures broken down by major types of credit exposure: Commercial Lending Export financing House Building loan
Tk. in Crore 1670.38 254.96 94.95
96.12 5175.77
Non performing Assets ( NPAs) to Outstanding Loans & advances Movement of Non Performing Assets ( NPAs) Opening balance Additions Reductions Closing balance Movement of specific provisions for NPAs Opening balance Provisions made during the period Write-off Write-back of excess provisions Closing balance
121.12 101.67 41.90 22.45 121.12 51.19 25.22 22.45 53.96
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Qualitative Disclosure (e) Equities: Disclosures for Banking Book Positions (a) The general qualitative disclosure requirement with respect to the equity risk, including: The Bank does not hold any value which is describes as Differentiation between holdings on which capital gains are expected and those taken under other objectives including for relationship and strategic reasons in RBCA Guidelines of Bangladesh bank. Therefore the Bank does not needed to narrate any Discussion of important policies covering the valuation and accounting of equity holding in the banking book, This includes the accounting techniques and valuation methodologies used, including key assumptions and practices affecting valuation as well as significant changes in these practices. Apart from above, the Bank has being calculated value at cost method for Quoted shares & Unquoted shares. Quantitative Disclosure (b) Interest Rate Risk Minor Moderate Major Increase in Interest Rate: Magnitutude of Shock 1.00% 2.00% 3.00% Net Interest Income impact <12 Months -27.23 -54.46 -81.69 Capital after shock 742.98 10.99 715.75 CAR after shock (%) 10.58 688.52 10.18 Change in CAR after shock (%) -0.40 -0.81 -1.21 Repricing Impact Change in the value of the bond portfolio -1.84 -3.69 -5.53 Capital after shock 741.14 10.96 712.06 CAR after shock (%) 10.53 682.99 10.10 Change in CAR after shock (%) -0.03 -0.05 -0.08 Overall change in CAR (NII & repricing impact, %) -0.43 -0.86 -1.29 Views of BOD on trading/investment activities: Market risk is potential for loss resulting from adverse movement in market risk factors such as interest rates, forex rates, and equity and commodity prices. The important aspect of the Market Risk includes liquidity management, interest rate risk management and the pricing of assets and liabilities. There are three types of Market Risk such as Interest Rate Risk, Foreign Exchange Risk & Equity Price Risk. The Board will have to approve all policies related to market risk, sets limits and reviews compliance on a regular basis. Method used to measure Market Risk: In Standardized Approach, the capital requirement for various market risks (interest rate risk, equity price risk, commodity price risk, and foreign exchange risk) is determined separately. (g) Market Risk
Quantitative Disclosure (b)
(c) (d) (e)
Value disclosed in the balance sheet of investments, as well as the fair value of those investments; for quoted securities, a comparison to publicly quoted share values where the share price is materially different from fair value. Tk. Crore Quoted shares Unquoted shares 200.91 The cumulative realized gain (losses) arising from sales and liquidations in the reporting period. Realized gain (losses) from equity investments 3.96 Total unrealized gains ( losses) Total latent revaluation gains (losses) Any amounts of the above included in Tier 2 Capita
(a)
(f) Interest Rate Risk in the Banking Book (IRRBB) (a)
There are no Capital requirements broken down by appropriate equity groupings, consistent with the bank's methodology, as well as the aggregate amounts and the type of equity investments subject to any supervisory provisions regarding regulatory capital requirements. The Banking Book consists of assets and liabilities contracted basically on account of relationshipor for steady income and statutory obligations and are generally held till maturity/payment by counter party. The earnings or changes in the economic value are the main focus in banking book. Interest rate risk is the risk that a bank will experience deterioration in its financial position as interest rates move over time. Interest rate risk in the banking book arises from a banks core banking activities. Interest rate risk is the exposure of a banks financial condition to adverse movements in interest rates. Changes in interest rates affect a banks earnings by changing its net interest income and the level of other interest sensitive income and operating expenses.
Market Risk Management System: The Treasury Division manage market risk covering Liquidity, interest rate and foreign exchange risk with oversight from Assets Liability Management Committee (ALCO) comprising senior executives of the Bank. ALCO is chaired by the Managing Director. ALCO meets at least once in a month. Policies and Processes for mitigating market risk: There are approved limits for credit deposit Ratio, liquid assets to total assets ratio, maturity mismatch, commitments for both on-balance sheet and off-balance sheet items and borrowing from money market and forex position. The limits are monitored and enforced on a regular basis to protect against market risk. The exchange rate committee of the Bank meets on a daily basis to review the prevailing market condition, exchange rate, forex position and transactions to mitigate foreign exchange risks.
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Quantitative Disclosure (b) Interest rate risk Equity position risk Foreign exchange risk Commodity risk The capital requirement for: Solo 0.76 3.00 3.18 Consolidated 0.76 24.04 3.18 Solo Basis (Only Bank) Sl 01 02 03 04 Sl 01 02 03 04 Quarter end March-2011 June-2011 Sep-2011 Dec-2011 Quarter end March-2011 June-2011 Sep-2011 Dec-2011 Total Capital 651.25 659.33 710.03 770.21 Total Capital 652.66 665.12 705.90 761.62 CAR 10.44 10.24 10.85 11.39 CAR 10.21 10.09 10.55 10.92 (Taka in Crore) Buffer Capital 90.04 80.01 55.89 94.00 Buffer Capital 77.34 72.04 36.83 64.30
(a)
Quantitative Disclosure
(b)
Views of BOD on system to reduce Operational Risk: Operational risk is associated with human error, system failures and inadequate procedures and controls. It is the risk of loss arising from the potential that inadequate information system; technology failures, breaches in internal controls, fraud, unforeseen catastrophes, or other operational problems may result in unexpected losses or reputation problems. Operational risk exists in all products and business activities. In addressing Operational Risk, Bank has been strengthened its Internal Control System, and ensure sound Corporate Governance in all sphere of Management and Operation level as well. The Bank should maintain a robust CBS (Core Banking Software) and enriches its IT infrastructure in terms of demand of time. Besides, in order to capacity building of its Human Resources Bank may be taken a number of steps like training, workshop etc. Performance gap of executives and staffs: SBL has a policy to provide competitive package and best working environment to attract and retain the most talented people available in the industry. SBL's strong brand image plays an important role in employee motivation. As a result there is no significant performance gap. Potential external events: No potential external events are expected to expose the Bank to significant operational risk. Policies and Processes for mitigating operational risk: To mitigate operational risk, Bank use basic indicator approach to calculate capital charge against operational risk. The policy for operational risks including internal control & compliance risk is approved by Board taking into account relevant guidelines of Bangladesh Bank. The Bank developed a Risk Management Unit and supervisory review Committee for review and managing operation risk as well as evaluating of the adequacy of the capital. For mitigating operational risk Internal Control and compliance division undertakes periodical and special audit of the branches and departments at the Head Office for review of the operation and compliance of statutory requirements. Approach for calculating capital charge for operational risk: The Bank followed Basic Indicator Approach (BIA) for measuring capital charges for operational risk. Under the Basic Indicator Approach (BIA), the capital charge for operational risk is a fixed percentage (denoted by alpha) of average positive annual gross income of the Bank over the past three years. The Capital Requirement for Operational Risk 36.88
(h) Operational Risk
Consolidated Basis (With Subsidiaries)
(Taka in Crore)
More specifically, stress testing may reveal a reduction in surplus capital or a shortfall in capital under specific scenarios. This may then serve as a leading indicator to the bank to raise additional capital, reduce capital outflows, adjust the capital structure and/or reduce its risk appetite.
Stress tests are used in proactively managing the banks risk profile, capital planning and management, strategic business planning and setting of capital buffers. Stress testing is an integral component of the groups internal capital adequacy assessment process (ICAAP), and is used to assess and manage the adequacy of regulatory and economic capital.
Stress Testing:
The Bank has assessed combined shock by aggregating the results of credit shock, exchange rate shock, equity shock & interest rate shock. In case of credit shock, increase in NPLs, results of increase in NPLs due to default of Top large borrowers, fall in the forced sale value (FSV) of mortgaged collateral, negative shift in the NPLs categories & increase of NPLs in particular 2 sectors have taken into consideration. Quarter End March-2011 June-2011 Sep-2011 Dec-2011 CAR Before Shock 10.44 10.09 10.55 11.39 CAR After Shock Changes in CAR of Minor Level 9.72 9.05 9.12 10.20 -0.72 -1.05 -1.43 -1.19
During the fourth quarter of the year, the outcome of the stress tests indicated that the bank was well within its risk tolerance levels in all of the scenarios. The result is given below:
Status of Basel-II Implementation
This process finally produces a numerical estimate of the change in the value of risk exposed positions. To interpret the result, Bank used a series of consideration to evaluate banks overall positions; deterioration in quality of asset result in stress losses that affect banks profitability & finally banks capital adequacy.
The International Convergence of Capital Measurement and Capital Standards, which is well known as Basel II is designed to help banks adopt a more comprehensive, sophisticated and risk-sensitive approach for calculating Capital of a Bank.
ANNUAL REPORT 2011
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To survive with the international best practices and to make the banks capital more risk sensitive as well as more shock resilient, Guidelines on Risk Based Capital Adequacy (RBCA) for Banks (Revised regulatory capital framework in line with Basel II) was introduced from January 01, 2009 as parallel run with existing method (Ref: BRPD Circular No. 10, dated November 25, 2002). At the end of parallel run period, Basel II regime has been started and the guidelines on RBCA has fully come into force from January 01, 2010 with its subsequent supplements/revisions. The Basel-II comprises the following three pillars: Managing, Controlling and Mitigating Risk under Pillar-1: 3) In order to keep the bank from any operational Risk derived from People, System and Process Standard Bank Limited has taken numbers of step to strengthening Internal Control System, Information Technology in all its business operational areas. A high profiled SRP team has been in force to oversee all of its operational activities from top of the 1) The Board of Directors meeting held on 24.06.2010 resolved and approved the issue regarding (Supervisory Review Evaluation Process) team. their risk profile and a strategy for maintaining capital at an adequate level.
Internal Supervision and Higher management oversight under Pillar-2:
Management. The bank also has a process for assessing overall capital adequacy in relation to constitution of SRP team for conducting dialogue with BBs SREP team. The SRP team is
Under the requirement of pillar-1 Banks needed to calculate MCR (Minimum Capital Requirement) in terms of its risk profile; against Credit, Market and Operational Risk and must hold minimum regulatory capital inherent with Banking Business.
1) To mitigate and minimize risk weighted asset in Banking Book, Standard Bank Ltd., has been pursuing to conducting Credit Rating most of its Corporate Client by External Credit Rating Agency. The Bank has taken necessary steps to rearrange its Credit Portfolios with more fixed weighted asset group like Agro based, Micro & Rural Credit, SME, Retail, and Consumer. The Bank has also successfully restricted its NPL.
assigned to conduct dialogue to be held between the bank and Bangladesh Banks SREP test in every quarter end and presented the result at the SRP team. Seven years and duly submitted to Bangladesh Bank.
2) Under the Stress Test model and guideline of Bangladesh Bank, The Bank has conducted stress 3) In order to follow ICCAP model of Bangladesh Bank, the Bank has made a capital planning for The SRP team comprises of the following members representing Senior Management & different cross-functional divisions: Sl 1 3 4 5 2 Designated Person Managing Director Position in Committee Chairman Member
2) In addressing Market Risk, The Bank orders to diversify portfolio of Foreign Exchanges, The Bank is very much vigilant in taking sufficient step in placement of fund in different Currencies and different locations,
Additional Managing Director Deputy Managing Director Head of Risk management
Member
Market Disclosure Framework under Pillar-3:
Head of FAD
Member
Member
Market Discipline is to complement the minimum capital requirements and the supervisory review process. It aims to establish more transparent and disciplined financial market.
The Board of Directors approved and resolved the Disclosure Framework under Risk Based Capital Adequacy guideline of Bangladesh Bank.
Honble Chairman Mr. Kazi Akramuddin Ahmed is found addressing the Inaugural Ceremony of Standard Co (USA) Inc. U/A/N Standard Express Jackson Heights, New York, USA.
The framework is opened for public in Banks website WWW.standardbankbd.com. Besides this is being published in major daily newspapers in every quarter end, which covers the following components: 1) Asset 2) Credit Risk on Banking Book 3) Market Risk in Trading Book 4)Operational Risk 5) Specific Provisions 6) Regulatory Capital and 7) Capital Adequacy
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The progress of Basel-II Implementation is done as follows:
Sl 1 Action Plan to implement Basel II Particular Reference/Method Remarks Done
SBL/bd/137/BM/69/1496 Date 25/11/2008 II/2008/1302 Ref. SBL/HO/Basel-
Ref. Board resolution no.
the core deposits of the Bank. SBL Regular Income program (SRIP), Double Income Plus (DI+), SBL Regular Deposit Program (SRDP), Life Secured Double Income Program (LSDIP) etc. are some attractive products, which contributed to the growth of deposit. Loan and Advances Total loans and advances figure of the Bank has increased to Tk.55,346.84 million as on December 31, 2011 in comparison to Tk.51,757.69 million as on December 31, 2010, which indicates an increase of 6.93% over the figure of last year. During this time the Bank has passed through some adversity in the economy, due to volatile capital market and world recession. Addressing those constraints, SBL prudently worked on consolidation of its existing portfolio ensuring profitability and risk mitigation.
Establishing Basel-II Implementation Unit
Complied
60000 50000 40000 30000 20000 10000 0
Reporting
Pillar-1: Minimum Capital Requirement (MCR)
date 20/10/2008
Credit Risk
Adequacy Assessed on 31/02/2009, And it is to BB regularly. being duly submitted
First Risk Based Capital
Complied
Operational Risk 4 Market Risk Pillar-2: Supervisory Review Process (SRP)
and Formation of SRP Team Stress Testing
Date 27/06/2010
SBL/bd/162BM/51/1265
Complied
tourism, hotel, motel, and other emerging sectors like pharmaceuticals, Steel re-rolling, Ceramic, Jute etc. and extended credit in those sectors for contributing into GDP of the national economy. The Bank sector and allocated fund of Tk.550.00 million for Agricultural sector towards contributing to poverty alleviation program. More funds will be allocated considering the requirement in future. For setting up large size project and to diversify risk, the Bank has been actively participating in the is also giving emphasize on Small & Medium Enterprise Loan, Women Entrepreneurship & Agricultural
During this time, the Bank has given emphasis on service sector like power sector, telecommunication,
conducted on 30/06/2010, to BB regularly.
First time Stress Testing
Complied
And it is being duly submitted Complied
framework (Qualitative & Quantitative)
Pillar-3: Market Disclosure- A disclosure
SBL always tried to give the highest return on the deposits from the customers. The deposits of SBL reached the level of Tk. 6387.06 crore during 2011 from Tk.5,834.44 crore of previous year. The growth rate is 9.47%. Cost of deposit for the year stood at 9.81% compared to the previous years cost of 7.83%. The increase in deposit was possible due to superior customer service delivery at the branch level. SBL is offering different types of deposit products for the customers. Among the products, Fixed Deposits, Scheme Deposits of different types, savings deposits, short-term deposits remained
Deposits
SBL/bd/162BM/51/1265 Date 27/06/2010
airlines, pharmaceuticals, textiles etc.
syndication arrangements. Total participation at the end of year 2010 it was Tk.1,168.72 million which stood Tk.1400.00 million at the end of year 2011. This includes power generation, telecommunication,
70000
70000 60000 50000 40000 30000 20000 10000 0
60000 50000 40000 30000 20000 10000
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Because of careful and continuous effort in operation of credit, it has been possible to arrest the nonperforming loan within 2.18% i.e TK.1,206.86 million as on December 31, 2011 out of total loan of Tk.55,346.50 million. Analysis of Loans and advances Particulars Secured overdraft Loans General Cash credit Staff Loans House Building loans Transport Loans Packing credit Forced Loan SME Loans against trust receipt 2006 2007 2008 2009 2010 2011
The Bank is very much aware of this marginal increasing trend of NPL and recovery effort has been geared up to reduce the non performing loan amount. A separate recovery unit has been formed with experienced employees, monitoring system has been strengthened and careful and due steps are being taken to maintain asset quality. Analysis of Deposits Particulars Current 2006 156 573 2007 343 854 12,965 19,214 933 946 2008 329 2009 453 (Figure in million Taka) 7,219 2,456 43,988 58,345 646 2010 8,045 2,579 46,657 63,871 741 2011
3,635 92 1
1,862
1,662 195
4,303 223 25
3,223
1,917 444
5,617 441 48
4,597
3,411 720
6,946 180 551
9,092
4,965 946
13,552 8,814 233 717
8,405
14,964 8,459 173 721
11,215 1,392 9,398 2,538 823 205 494
1,404 7,843
Bills Payable
1,700
3,173
4,385 1,085 20,912 29,304
4,947 1,773 31,706 42,548
Payment against document Lease Finance Consumer Credit Scheme Total Bills purchased and discounted
2,600 980 211 -
1,854 269 288 54 55
3,234
5,573 567 55
3,043 627 65
7,529 3,114 655 810 23 80
Savings Bank
1,056 793 53
3,234 74
Short Term Deposits Fixed Deposits Total Deposits Under Schemes
10,573 14,222 626
594
1,224 1,369
1,722 1,947
1,804 2,232
2,285 3,564
156 40
623 577
802
1,206 27,190 1,220
1,834 38,057 1,332
3,396 51,758 2,184
3,190 55,346 1,588 186
12,634
17,310
619
LOAN PORTFOLIO MIX
Loans General [27.04 %] Cash Credit [15.28%] House Building Loan [2.52%] Sta Loans [0.31%] Transport Loans [1.30%] Loans against trust receipt [16.98%] Payment against document [4.59%] Packing Credit [0.89%] Forced Loan [0.37%] Lease Finance [1.49%] SME [5.76%] Consumer Credit Scheme [0.34%] Bill Purchased and Discounted [2.87%] Secured Overdra [20.26%]
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Credit Administration Division (CAD) The function of Credit Administration is critical in ensuring that proper documentation and approvals are in place prior to the disbursement of loan facilities. For this reason, it is essential that the functions of Credit Administration be strictly segregated from Relationship Management/Marketing in order to avoid the possibility of controls being compromised or issues not being highlighted at the appropriate level. CAD is one of the vital parts of Bangladesh Bank CRM Guideline. As a whole, total activities of credit arena is staying under the umbrella of CAD. For effective implementation of CRM guideline policy usually the Bank split up the credit functions under the following areas: a) Pre sanction activities: Selection of borrower to sanction of loans and advances is under the purview credit guide line of credit policy b) Post sanction to disbursement activities: After sanction of loans and advances the followup activities are done up to disbursement of loans and advances. c) Post disbursement to settlement activities: Monitoring the repayment, recovery of loans and advances, necessary legal activities and counseling with the borrower are the main function at this stage. 2. Monitoring before disbursement: (a) (a) Classification status (b) Overdue liability (c) Nature of transactions (d) Equity investment
3. Disbursement in central software: Recovery
Open the new loans and advances in regular and one time limit (b) Modification in renewed and enhanced loans and advances (c) Unlocked & locked of GL head
Standard Bank Limited emerged as a Private Commercial Bank of Bangladesh on 3rd June, 1999. Meanwhile twelve and half years have passed and the Bank has expanded its wing, i.e. 68 branches are now working throughout the country. Business volume and other peripheral activities are increasing day by day. Now total deposit of the Bank as on 31.12.2011 is Tk.63869.92 million and Loans and advances is Tk.55332.04 million. Over the period some loans generally become non performing. So, to maintain asset quality and to arrest the growth of non performing loan a new division called Recovery Division has been set up.
Job areas of CAD in our Bank are mostly confined after sanction to disbursement of loans and advances. Before disbursement of loans and advances we have to make scrutiny of the security documentation as per terms and conditions of sanction advice to protect Banks interest from lthe legal point of view. Security documents are prepared & executed in accordance with approval terms and are ensured so that they are legally enforceable. Standard loan facility documentation that has been reviewed by legal counsel is used in all cases. Exceptions are referred to legal counsel for advice based on authorization from an appropriate executive in CRM. Disbursements under loan facilities are only be made when all security documentation is in place. CIB reports reflect/include the name of all the lenders with facility, limit, outstanding & classification status. All formalities regarding large loans & loans to Directors are guided by Bangladesh Bank circulars & related section of Banking Companies Act.
Recovery Division from its inception has been following up the classified loans, slow and sticky, overdue and Special Mentioned Accont(SMA) loans through giving proper treatment/advice to the branches regularly. Besides this, Recovery Division always monitors the suits filed against the defaulting borrowers with lawyers and informs the position to the Higher Management and Board of Directors of the Bank time to time. As a result a very negligible percentage of loan (2.19% i.e. Tk.1211.22 million) has become non performing loan as on December, 2011 out of total loans and advances of Tk.55332.04 million. Last year (2010) this percentage was 1.96%. During the year 2011 an amount of total Tk.861.85 million was newly classified and an amount of classified loan Tk.667.30 million was reduced by recovery in the form of cash Tk.148.50 million, rescheduling loans and advances of Tk.270.90 million, writing-off loans and advances of Tk.246.80 million and waiving of interest Tk.1.10 million. The percentage of recovery of classified loan is 35.52%. The bank is aware of the increasing trend of NPL and effective recovery efforts have been geared up to reduce the non performing loans. The Bank is very alert about the asset quality and taking proper steps to maintain asset quality by reducing the classified loans and stopping new classification of loans and advances in the current year. Retail Banking SMALL & MEDIUM ENTERPRISE FINANCING:
After sanction of loans and advances CAD starts its job through checking documentation with relevant sanction advice and current legal environment. If documentations are executed in proper manner the Bank can avoid many of its adverse situation which may occur in future. In other words the activities of CAD are reducing the probability of NPL. Mentionable that increasing trend of NPL is the major problem of banking sector in Bangladesh. For allowing disbursement of loans and advances, CAD observes the following factors: 1. Scrutiny of documentation before disbursement: (a) (d) Charge documents (b) Collateral security documents (c) Guarantee Other terms and conditions of sanction advice
Small & Medium Enterprises (SME) play a very important role in the economic activities of a country, so for Bangladesh as well. Globally, it is now recognized that there is an emergent need of development of SMEs. The small enterprises are vital for economy and a main driver for the growth engine. This sector is also considered to play key role behind employment generation, increased productivity and creation of new wealth, as well as, distribution thereof. SME is also regarded as a major weapon to fight poverty. Thus, as a financial institution, we increased focus on availability of micro finance to the SMEs through improved banking system. Bangladesh Bank has also provided necessary instructions and guidelines for banks to be more enthusiastic in diverting the loan portfolio towards financing SMEs. Under the leadership of the Governor, Bangladesh Bank arranged Road Show from Teknaf to Tetulia for creating awareness among the Small & Medium Entrepreneurs with
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In line with the policy guidelines of Bangladesh Bank, Standard Bank Limited has taken all necessary steps including establishment of SME Division at Head Office, to extend credit facilities to the SMEs. For the purpose, the bank has opened seven SME / Agricultural Branches upto the year 2011 and more branches in the coming year to support SME activities while all other branches of the bank are playing active role in this regard. Global Comparative Business Performance on SME Financing as on 31.12.2011: Enterprise Small Total Disbursement during 128.17 2010 the year 168.72 86.00 2011 Growth Rate 2011 31.63% Beneficiary 2011 849 86 935 (Fig in Crore) No. of Yearly 2011 220 330 550 Achievement 76.69% 2011 (%) participation of banks where Standard Bank Limited also took part in it. Bangladesh Bank views SME financing as a priority sector and accordingly, it received similar attention from us..
Target
Medium
Standard Bank Limited is dealing with the women entrepreneurs with special attention and a special desk for the women entrepreneurs is maintained to help them in all respects to ensure proper and easy banking facilities. Refinance Agreement with Bangladesh Bank: Refinance Agreement was signed with Bangladesh Bank on 06.04.2010. During the year 2011, we have received Tk.1.53 Crore refinance from Bangladesh Bank for lending women entrepreneur. Events on SMEs participated by Standard Bank Limited: 1) 2) 3) 4) 5) 6) 7) 8) 5th FBCCI SME FAIR-2011 (December 20-24, 2011) at Bangabandhu International Conference Center. BANK-NASIB SME SAIKAT UTSOB (November 12-14, 2011) at Coxs Bazar. Banker-Entrepreneur Conference-2011(28-05-2011) at Gopalgonj. Light Engineering Fair-2011 (01.04.2011) at Bogra. Road Show- (Teknaf-Tetulia). Monipur Mohila Tati Shomabesh-2011 (15.04.2011) at MoulviBazar, Sylhet. Agro based Industry, SME Finance & Entrepreneurs Fair -2011 (12.03.2011) at Rangpur. SME Fair organized by SME Foundation (15-16th Feb, 2011) at Chittagong.
Women Entrepreneur Desk:
281.84
153.67
254.72
- 44.03% - 9.62%
25.98%
46.26%
Honble Chairman of the Bank Mr. Kazi Akramuddin Ahmed accompanying the Directors is found opening Nawabgonj Branch, Nawabgonj, Dhaka.
Agriculture & Rural credit Division:
As a financial market player, Standard Bank Limited is very much concerned with the needs of financing agricultural and rural economic activities and accordingly designed its policy for lending in the sector. In giving thrust to this sector and in line with Bangladesh Bank policy guidelines, a target of loan disbursement of Taka 105 crore has been set through the network of branches for the Financial Year (FY) 2011-2012. Bangladesh Bank has set a target Taka 13800.00 crore as a whole for the FY 2011-2012. for such lending globally in Bangladesh. The bank has developed different categorized financing program such as crop, fishery & livestock, Poverty Alleviation Program (Adarsha Gram Prokalpo), financing certain specified crop (pulses, maize, oilseeds, spices etc.) under subsidized / low interest rate, etc. The Bank also arranged to impart necessary training for officials to build field level orientation and capacity to deal with the issues efficiently including employment of officials to work in this sector. Combined Village Development Program for Poverty Alleviation In order to improve socio economic conditions, the living standard of rural poor and as a part of banks commitment to social responsibilities, Standard Bank has extended its credit facilities to people of two remote villages namely Kurpala under Kotalipara Upazilla and Tungipara under Tungipara Upazilla under Combined Village Development Program for Poverty Alleviation (Adarsha Gram Prokalpo) after conducting necessary survey study in those areas. During the current year, the Bank has disbursed 85 nos. of loans amounting to Taka 15.68 lacs in 2nd phase through its Kotalipara and Gopalgonj
In line with the above, Bangladesh Bank has also set policies to finance agricultural and rural activities through the banking institutions under different packages and incentive programs. All these have resulted in a favorable impact on the sector. Agricultural production had substantially helped the economy to perform well and to sustain against the effects of global crises.
Bangladesh, by nature, is an agriculture based country leading to scope of employment and earning livelihood of major part of its population activities. This calls for channelising financial resource availability to the farmers and other rural entrepreneurs in order to fund the requirements to undertake farming and other rural activities effectively. For the development of this sector, Government of Bangladesh, through its multiple windows, is also providing all possible support to agricultural activities, particularly for increase of food production in order to ease pressure on import of food items.
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branch which was 88 nos. of loans amounting to Taka 12.22 lacs in 1st phase last year. Expansion of such program taking one village in one district is under active consideration. Area Approach/ Cluster Policy: In line with Bangladesh Bank policy guidelines, Standard Bank Limited has taken due initiatives to extend finance to area based activities. The Bank extends financial facilities for flower cultivation, fish cultivation, beef fattening in some selected area of Sharsha, Benapole and Jhikargacha upozilla of Jessore district. An amount of Taka 70.00 lac has been disbursed in the current year under this Project while it was Taka 27.00 lac in the previous year.Taka 28.00 crore was disbursed in agriculture and rural sector during the FY 2010-2011 and Taka 14.00 crore has been disbursed during the 1st half year of FY 2011-2012 through our branch network and MFIs. Endeavor is in place to continue disbursement in this sector for the remaining period of the FY 2011-2012. Solar Panel, Bio-Gas, Effluent Treatment Plant Financing under Refinance Agreement with Bangladesh Bank: A Refinance agreement between Bangladesh Bank & Standard Bank Limited has been singed on 05th October 2011 to promote and support financing for Solar Panel , Bio-Gas , and Effluent Treatment Plant (ETP) . The Bank has already financed some borrowers for installation of Solar Panel amounting to Taka 4.88 lacs against which the bank received refinance from Bangladesh Bank. Investment Treasury mainly focuses on Statutory Liquidity Ratio (SLR). SBL Treasury usually maintains its Investment portfolio mainly for maintaining SLR and to some extent for the prudent fund management. The Portfolio mostly consisted of 91 Day, 182 Day and 364 Day Government Treasury Bills. Also there
Honble Chairman of the Bank Mr. Kazi Akramuddin Ahmed accompanying the Directors is found opening ShibChar Branch, Madaripur.
International Banking International Trade
are a couple of 5 Years Bangladesh Government Treasury Bonds in Banks holding. Diversified Investment portfolio also reflects distribution of liquidity performance. In the year 2011, the size of Investment portfolio raised at Tk.739.85 Crore against Tk. 652.81 Crore in the year 2010 showing an increase of 13.33%. Within the portfolio of 2011, 94.32% are in the HFT (Held for Trading) mode and the rest 5.68% are in the HTM (Held to Maturity) mode. Besides the investment of Government Treasury Bills/Bonds, SBL invested Tk.35.00 crore to the Fixed Rate Subordinated Bond of Dhaka Bank Limited, National Bank Limited, Trust Bank Limited Unsecured Subordinated Non-convertible Bond and First Bangladesh Fixed Income Fund.
One of the most important components of Standard Banks business profile is International Trade that has been playing a significant role in the overall foreign exchange business since inception of the bank. The bank is contributing in countrys national economy by successfully handling foreign exchange business offering a broad spectrum of Trade Finance Products through its 17 Authorized Dealer (AD) including International Division. We are planning to apply for AD licenses in favour of our CEPZ Branch, CDA Avenue Branch and Mirpur Branch in near future to undertake foreign exchange business . Import
Honble Minister for Health & Family Welfare Dr.A.F.M Ruhul Huq is found opening Satkhira Branch. The Chairman Mr. Kazi Akramuddin Ahmed and other Directors of the Bank also seen at the opening ceremony.
During the Year 2011, the import volume of the bank stood at USD 670.39 million equivalent to BDT 50,497.18 million while it was USD 782.51 million equivalent to BDT 54,777.71 in the Year 2010 indicating a decrease of 7.81% despite recent worldwide economic recession.
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Export During the Year 2011, total export volume stood at USD 614.96 million equivalent to BDT 45,355.92 million. Export volume increased with a growth rate of 8.26% over the previous Year 2010 with export volume of USD 612.87 million equivalent to BDT 41,894.20 million. The bank emphasized on export of both traditional items like Raw Jute, Jute Goods, Readymade Garments, Leather and non-traditional items like Tiles, Bi-Cycle, Shrimp, Handicrafts, Betel Leaf, Betel Nut, Coriander seeds, Pet Bottle Flake etc. Foreign Correspondents
Quality and Quantity of Foreign Exchange Business depends on efficient correspondent banking relationship with reputed banks all over the world. Among others, increasing foreign exchange business is an objective of the bank. Keeping the objective in consideration, all out effort to establish correspondent banking relationship with internationally reputed banks all over the world is a continued process for us. Now the bank has correspondent banking network with 316 renowned banks around the world alongwith RMA (Relationship Management Application) under SWIFT covering all of their branches abroad. During the year 2011, we have made RMA arrangement under SWIFT with 22 local banks. The bank is enjoying credit line of substantial amount from most of the renowned banks where Standard Chartered Bank, Mashreqbank psc, HSBC Bank Ltd, The Bank of Nova Scotia, Commerzbank Germany, Wachovia Bank, AB Bank Mumbai, AB International Finance Hong Kong, HBZ Finance Hong Kong and Banca UBAE of Italy are mentionable. This helps us to honor our LCs and to fulfill our payment commitment abroad. In addition, Asian Development Bank (ADB) under the agreement signed in 2009, will confirm our LCs for big amount through our correspondent banks abroad.
Honble Chairman of the Bank Mr. Kazi Akramuddin Ahmed accompanying the Directors is found opening Bagerhat Branch.
Inward Remittance
Presently, the bank has remittance drawing arrangement with Wall Street Finance LLC, USA, Wall Street Exchange Centre LLC, UAE and MoneyGram Inc., USA. MoneyGram facilitates remittance made by Bangladeshi expatriates all over the world by using their Global network. Remittance drawing arrangement with Wall Street Exchange Centre, LLC, UAE has been commenced in 2011. The bank continues its efforts to make remittance arrangements with different exchange houses in the potential countries. The bank has signed agreement with Universal Exchange center and Economic Exchange center of UAE. Total Inward Remittance Foreign Remittance Business of the bank stood at USD 44.67 million equivalent to BDT 3,338.06 million during the Year 2011, which is higher by 90.92% compared to previous year 2010. The same for 2010 was USD 25.08 million equivalent to BDT 1,748.43 million. Remittance received from Exchange Companies During the year 2011, we have received USD 37.59 million equivalent to BDT 2,826.54 million through different exchange companies; where USD 25.62 million equivalent to BDT 1,926.55 million from Standard Exchange Co. (UK) Ltd and USD 7.83 million equivalent to BDT 588.89 million from Standard Co. (USA) Inc. In 2010, remittance received from all exchange companies was USD 13.37 million equivalent to BDT 1,043.78
Accompanying the Directors Mr. Kazi Akramuddin Ahmed, Chairman of the Bank is seen opening Oxygen Mour Branch, Chittagong.
Other remittance
The bank received remittance from other sources amounting to USD 7.08 million equivalent to BDT 511.52 in the year 2011 while it was USD 11.71 million equivalent to BDT 704.65 million in 2010.
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Banks Own Exchange Company Standard Exchange Co (UK) Ltd., 100% owned subsidiary company of Standard Bank Limited is operating in UK since August, 2009 at 101 Whitechapel Road, London E1 1DT, UK. Besides, we have opened Standard Co. (USA) Inc. U/A/N STANDARD EXPRESS at 37-22 73rd Street Suite # B2, Jackson Heights, NY 11372, U.S.A. on 1st March 2011 with 4 branches at Jackson Heights, Jamaica, Ozon Park and Brooklyn in New York. Opening of our branches at Bronx, Astoria and in Los-Angeles is under process. We have already obtained license from Bangladesh Bank for opening Standard Money Transfer (Australia) Pty Ltd. in Australia, opening of which is under process subject to obtaining license from Australian Financial Service Authority. We have also planned for opening Exchange Companies in Italy and Spain. As such, Bangladeshi expatriates living there will be able to remit money with ease, comfort and confidence. SBL Treasury is an important and unique banking unit and it is one of the best earning sources of the Bank at Head Office level. Unlike every bank, our Treasury Division comprises with the two wings. One is Money Market Dealing with the Local Currency for managing and utilizing fund and the other is Foreign Exchange Dealing with the Foreign Currency. We have a superb Treasury Team working for prudent fund management with excellence in performance and skill. During the Year 2011 total income from the Treasury was Tk.89.34 Crore from which Tk.35.90 Crore earned from the Foreign Exchange Transactions and Tk.53.44 Crore earned from the Local Currency Transactions in the money market. Treasury
Strategic Business Outlook
Mr. Kazi Akramuddin Ahmed Honble Chairman of the Bank is seen observing the functional system of the ATM booth of the Bank at Mirpur, Dhaka.
Standard Bank Ltd. has put in strong endeavor to involve in banking sectors with the vision to grow with the economy of the country. It considers the entire spectrum of businesses activities irrespective of size, not only for the better service to its clients, but for all stake holders and people at large. The changing scenario at Banking sector is experiencing different attention on different perspective. The priorities are also taking new style in recent development of Regulatory structure and market condition in Bangladesh. Thus Standard Bank Ltd. has taken number of steps to diversify its business avenue. Special attention is being given to finance in Infrastructure, Power Generation, Pharmaceutical, Ship-Building, Iron & Steel industries. Due attention is now being given to Agri & Agri based sector. SME and other micro credit operations are new areas for us for uplifting national economy at large.
Besides, business expansion is being addressed in many ways like opening of one exchange house in the UK and similar other exchange houses to be opened in the USA, Italy and Canada within the shortest possible time. At home some more Branches are being opened considering potentialities and demand of the economic needs of the concerned areas. Its ultimate goal is to cover more areas with technology based delivery channels.
Honble Chairman of the Bank Mr. Kazi Akramuddin Ahmed accompanying the Directors is found opening Nilphamari Branch.
Dynamic decision making process, Moderate Risk based Management, Diversified and peoples friendly business model, Dedicated IT infrastructure, Technology base product, Strong Internal Control System and Efficient Performance of the Management team are most effective tools in attaining better outcome at Standard Bank Ltd.
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Our strategic management is a process that evaluates and controls our business in the total Banking industries, in which we are exactly involved. We also assess the market environment to set goals and strategies by taking into consideration of all potential competitors. Branch Expansion and Business Diversification The year 2011 for our Bank was, of course, remarkable as well as worth noting because of the fact that the year had been marked by an astounding multidimensional steps taken by the management. Several epoch making steps in matters of business dissemination and diversification had taken place during the year. Keeping in mind the existing on going strategy plan set beforehand, we, during the year 2011, opened 10 (Ten) new branches including 03 (Tree) Rural Branches with the total number of branches coming are capable of and adept in handling all types of foreign Exchange Business and transactions. record of growth and development through
at 68 (Sixty Eight) out of which 16 branches are Authorized Dealer. These AD branches, properly manned by highly dedicated professionals and dexterously supported by state-of-the-art technology, Our bank plans to open 20 (Twenty) new branches both urban and rural areas in the year 2012 across the country in order to reach the general masses and make available banking services to every sectors/areas, thus speeding up the pace of growth of economy. Standard Exchange Co (UK) Ltd., 100% owned subsidiary company of Standard Bank Limited is operating in UK since August, 2009 at 101 Whitechapel Road, London E1 1DT, UK. Besides, we have
Signing Ceremony of Agreement between Standard Bank Limited and Dutch- Bangla Bank limited
opened Standard Co. (USA) Inc. U/A/N STNADARD EXPRESS at 37-22 73rd Street-Suit # B2, Jackson Heights, NY 11372, U.S.A. on 1st March, 2011 with 04 branches at Jackson Heights, Jamaica, Ozon Park and Brooklyn in New York. Opening of our branches at Bronx, Astoria and in Los Angeles is under process. We have already obtained license from Bangladesh Bank for opening Standard Money Transfer (Australia) Pty Ltd. In Australia, opening of which is under process subject to obtaining license from Australia Financial Service Authority. We have also planned for opening more Exchange Companies in Italy and Spain. As such, Bangladesh expatriates will be able to remit money with ease, comfort and confidence. Internal Control and Compliance Division
The primary objectives of internal control system are to help the Bank perform better through the use of its resources, identify its weaknesses, take appropriate measures to overcome the same and ensure compliance with applicable laws and regulations. The Bank has set up Internal Control & Compliance Division at Head Office to ensure that the internal control processes are in place through establishment of Audit Committee as per the instructions of Bangladesh Bank. The Committee reviews the internal and external audit reports without any intervention of the Bank Management and ensures that Management takes effective measures in case any deficiency/lapse is found in the reports and internal control system.
Agreement of signing ceremony between standard Bank Ltd. and AAA Consultant & Financial Advisors Ltd.
The Bank has introduced Risk Based Internal Audit (RBIA) to assess the business risk as well as control risk associated with the branches and determine how much care, monitoring & periodicity of comprehensive internal audit would be required to reposition the branches.
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Each year the Internal Control & Compliance Division sets out an audit plan (internal) for the year 2011 which is approved by the Managing Director as well as Audit committee of the Board. In the year 2011 Internal Control & Compliance Division conducted comprehensive audit on 39 (Thirty Nine) branches and 06 (Six) Divisions at Head Office of the Bank. In the same year, the internal audit team carried out 10 Surprise Inspection on different branches. Five special audits on different issues were conducted in the year 2011. Moreover Internal Control & Compliance Division of the bank ensures its Internal Control Process through review of Departmental Control Function Checklist (DCFCL), Loan Documentation Checklist (LDCL) and Quarterly Operations Report (QOR) of the branches and other mechanisms.
Besides that the Management Committee (MANCOM) of the Bank monitors the effectiveness of internal control system time to time. The MANCOM provided certificate on overall adequacy & effectiveness of internal control system based on Banks policy & procedure to the Board of Directors in the year 2010.
At the end of the year a summary report on audit findings and corrective action taken, is placed in a meeting of the Audit Committee of the Board for information and necessary advice/suggestions. To comply with the directives of Bangladesh Bank a special meeting of the Board of Directors was convened in 2011 to review the compliance/ implementation status on the observations of Bangladesh Banks comprehensive inspection report, where the representatives of Bangladesh Bank were also present.
Besides above, Bangladesh Bank Inspection teams conducted inspection on 40 (Forty) branches and 09 (Nine) Divisions of Head Office during the year 2011 which included Comprehensive Inspection,
Inspection on Foreign Exchange Transaction and Core Risk Inspection on Anti Money Laundering Activities, Credit Risk Management, Information Technology and Internal Control & Compliance. Details are as under: Nature of Inspection Comprehensive Inspection Comprehensive Inspection on Foreign Trade & Foreign Exchange Transaction Surprise Inspection Special Inspection on Branch Special Inspection on CF Special Inspection on ICT Security Special Inspection on ICC Special Inspection on ICT Special Inspection on CRM Special Inspection on ALM Anti Money Laundering Total Head Office/ Division 1 1 Branches 16 9 2 1 1 1 1 1 1
Honble Prime Minister , Jananetri Sheikh Hasina is found receiving cheque for Tk.1.00 crore of Standard Banks Contribution to Shishu Hospital . The Chairman of the Bank Mr. Kazi Akramuddin Ahmed is seen with the Honble Prime Minister.
Honble Chairman Mr. Kazi Akramuddin Ahmed is found delivering speech in the inaugural ceremony on Banking Foundation Course for Probationary Senior Officer conducted by Standard Bank Limited Training Institute.
All the reports have been complied within prescribed deadline.
1 1 1 1 1 1 1 9
7 40
Above picture definitely demonstrates the working capability and perfectness of officers and executives of ICCD as well as all employees of the bank.
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Anti Money Laundering The Bank has amended its Anti Money Laundering (AML) Guidelines in 2011 to determine the AML strategies with latest national and global standard. Banks Central Compliance Unit (CCU) regarding AML is headed by Chief Anti Money Laundering Compliance Officer (CAMLCO) to ensure proper implementation of its AML program. In branches there is a separate cell assigned to BAMLCO (Branch Anti Money Laundering Compliance Officer) to look after total AML issues from a single point. The CCU has ensured close monitoring and supervising function among the Branch outlets and all operational parts of the Bank to strictly enforce its AML affairs. Risk based approach is used in addressing AML issues. The Bank also follows standard Customer Due Diligence (CDD) and / or Expanded Due Diligence (EDD) process in accordance with domestic regulatory framework and International Standard Best Practices. Besides, the Bank also ensures Due Diligence in all subsidiaries and correspondences home and abroad. In order to adhere to national and International standard of AML functions, The Bank has a precise policy to comply with all recommendations, accord, and sanctions of United Nations (UN), Financial Action Task Force (FATF) and Asia Pacific group (APG). Besides, the bank is highly constrained for not to establish or continue any relationship with any Entity listed by United Nations (UN), Financial Action Task Force (FATF) and Asia Pacific group (APG). The Bank has been strictly following some standard process to assert Suspicious Account / Transaction in all of its client base, product lines and walk in customers.
The customers are seen getting services at the counter of our pricipal Branch, Dhaka.
In recruitment process, the Bank has been screening all job applications in line with AML guidelines. To educate officials at all levels the Bank follows pragmatic training and staff development program with its Training Institute, external training, Online Training, and in-house awareness procedures. Besides, The Bank has been continuing customer awareness program in its all service delivery points. In Risk Based approach the bank has to ensure to classify all its customers relating to their business style. A Risk Based Self Assessment process is being used to assess and profile the Risk by the Branch for review of their AML work plan. The Bank ensures all internal and external reporting requirements as per regulatory framework. The Bank has been maintaining a particular Record keeping Policy in line with domestic legal and regulatory framework, apart from maintaining international standard best practices.
Appointment of Auditors
Standard bank Limited has undertaken strong commitment to pursue strictly AML, so that the organization is capable of keeping its all operational activities away from any type of threat derived from Money Laundering and Terrorist Financing.
M/s. Khan Wahab Shafique Rahman & Co.a renowned audit firm having wide experience, has been appointed as Auditors of the Bank for the year 2011 by the shareholders in their 12th Annual General Meeting until the next AGM. They have completed audit of the bank in time.
Mr. Harun Rashid Chowdhury, Chairman Executive Committee is seen presiding over the 84th Meeting of the Executive Committee.
Board of Directors
In compliance of Bangladesh Banks rule, the Bank has constituted the Board of Directors with 18 members of high academic caliber and excellent professional knowledge, experience and skills
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together with the Managing Director as Ex-officio Director. During the year 2011 there had been 14 Board meetings. The Board approved different loan & investment proposals and adopted policies and plans for smooth growth of business. The Board provided guidelines for technological development in consideration of requirement of time and to face the challenges and competitions. The Board also reviewed different policies & programs on monthly basis and provides guidelines to the Management for upholding and protecting the interest of the Bank. Executive Committee The Executive Committee (EC) of the Board consisted of 07 members (Six Directors and the Managing Director). The Committee approved all the credit proposals and expenditure etc. as per approved guidelines and policy of the Board. The EC of the Board used to ensure the implementation of policy and guidelines of the Board. There were 10 (ten) meetings of the Executive Committee during the year 2011. Audit Committee SL.No. 2 3 1. The Audit Committee reconstituted as under by the Board of Directors of the Bank in accordance with the BRPD circular letter no.12 dt.23.12.2002. issued by Bangladesh Bank: Mr. S.S. Nizamuddin Ahmed Mr.Md. Zahedul Hoque Mr. Moshfeque Mamun Rizvi Names Status with the Bank Director Director Director Status with the Committee Chairman Member Member The Group Company Secretary of the Bank has been nominated as Secretary of the said Committee as per Bangladesh Bank Circular. 1. Audit report of External Auditors for the year 2010.
During the year 2011, the Audit Committee conducted 6 (six) meetings wherein following audit & inspection reports and financial statements were discussed: 2. Compliance Report of Bangladesh Banks Comprehensive Inspection as on 31.12.2009 3. Un- audited Financial Statements as on 31.03.2011, 30.06.2011 of the Bank. 5. Yearly Certificate of the Management (MANCOM) for the year-2010. 6. Revised Annual Audit plan-2011. 8. Statement of classified loans & advances.
7. Strengthening Internal Control & Compliance Division by posting experienced & prudent Banker. 9. Statement of slow, sticky, overdue & SMA loans & advances. 11. Statement of term loan created / converted from LTR a/cs. 10. Statement of re-scheduled / time extended loans & advances. The Audit Committee discussed agendum thoroughly and provided following instructions and guidelines to the Management for compliance: *The Management shall assign responsibility of recovery of classified loans to individual Officer/ Executive and Recovery Division will monitor & follow up till final adjustment/settlement of the loan. loan a/cs. * To identify the weak area of the loan and to closely monitor and supervise all the overdue & classified *To assess business position of the borrower and to physically verify the collateral security. * To maintain Suit Register henceforth by all the branches properly. target.
4 5.
Mr. Md. Fayekuzzaman Mr. A.F.M Nizamul Islam Chowdhury
The Group Company Secretary of the Bank has been nominated as Secretary of the said Committee as per Bangladesh Bank Circular. The Committee held 6 meetings during the year under review. DISCLOSURE ON AUDIT COMMITTEE
Director Group Company Secretary
Member Member Secretary
The Audit Committee constituted as under by the Board of Directors of the Bank in accordance with the BRPD circular letter no.12 dt.23.12.2002. issued by Bangladesh Bank:
SL. No. Names Status with the Director Director Director Bank Status with the Committee Chairman Member Member Qualification M. Com MBA Educational
*To negotiate / settle the suits already filed against the borrower outside the court ,where applicable. * To closely monitor & provide guidelines for boosting income at each Branch for achieving monthly
1. Mr. S.S. Nizamuddin Ahmed 2 Mr.Md. Zahedul Hoque 3 Mr. Moshfeque Mamun Rizvi 4 Mr. Md. Fayekuzzaman 5 Mr. A.F.M Nizamul Islam Chowdhury
*To minimize the expenditure as far possible so as to keep the expenses controlled as far as possible. *To obtain approval for appointment of a Chief Finance Officer (CFO) from the Board & ensure compliance.
Director
Member
Secretary
Member
B.Com(Hons) M.Com. B.A, L.LB
Bar-at-law
*To conduct risk based internal audit and surprise inspection on the basis of Departmental control functions check list as per ICC guidelines. * To draw an Annual Audit Plan for ICCD in accordance with the Terms of Reference.
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*To set up a separate IT Audit Wing under ICC Division for conducting audit in order to ensure proper implementation of all procedures, norms & practices regarding IT works and ensure compliance there of. * To place a memo to Audit Committee as to ensure compliance of Bangladesh Bank s circular specially ICCD , Anti- Money Laundering, Risk Management, IT etc. accordance with risk factors. * To ensure capacity build up of Audit Division as to enable them for smooth auditing the branches in * IT department may be audited, if required by the outside agency to ensure safety, security & smooth functioning of the department and the Bank. where the Bank has Exchange houses. remittance based area. * To take initiative for expansion of Islamic Banking at home as well as by opening counter in abroad * To draw action plan to collect low cost , no cost deposit by opening new a/cs as well as branches at Green Banking Committee The Green Banking Committee of the Board of Directors sits for meeting to review the progress of implementation of the Action Plan of the Green Banking Policy of the bank and take necessary decisions / adopt resolutions towards effective implementation of the Action Plan. In the year 2011, two meeting of the Green Committee of the Board of Directors were held where agenda of Apprising on Bangladesh Policy Guidelines on Green Banking, Apprising on adaptation and approval for implementation of Green Banking Policy Guidelines, Report on implementation of Green Banking Policy Guidelines, Report on one day workshop on Green Banking, report submitted to Bangladesh Bank, Report on Employees Awareness, In-House Environment Management, Progress report on implementation of Phase I of Green Banking Policy Guidelines, Report on Green Finance, Progress on Green Branch & Green Products, etc were placed and discussed advising the Management of the bank to ensure proper and timely implementation of the issues. Standard Bank Limited, in compliance of Green Banking Policy Guidelines is implementing Green Banking Action Plan with due importance and gravity which includes efficient management of electricity, water, paper, gas, fuel, use of energy saving bulb, use of day light, installation of solar panel at branch premises, Credit Card & Debit Card, On-Line & Internet Banking, eco financing, etc. Shariah Supervisory Committee The agenda of the meeting were: 1) 2) 3) 4) 5) The first meeting of the Shariah Supervisory committee was held on 21.04.2011 at the Board room of the Bank. Selection of Member Secretary of the Shariah Supervisory committee Formation of Shariah Secretariat Shariah Audit in Islami Banking Miscellaneous
Global warming has become a very vital issue that calls for the responsible factors to be addressed
properly by all stake holders to maintain the environment at its natural standard. The rapid change in climate has direct impact on bio diversity, agriculture, forestry, water resources and human health. deterioration but improvement, as well. Unusual weather pattern is rising greenhouse gas, declining air quality which demands for businesses to take responsibility in safeguarding the environment at a standard which would not only arrest further
In consideration of above stated situation and the bank, being a business cum financing concern has great responsibility in maintaining environment through In-House environment management and has put forward Policy Guidelines for Green Banking suggesting certain actions to be taken by the Environment Risk Management (ERV) as a part of Credit Risk Management (CRM), initiating In-House
Performance & Products of Islami Banking
financing businesses that are eco friendly. To bring the banks in green practices, Bangladesh Bank banks as forming Boards Committee comprising of Directors, Green Banking Unit, Incorporation of Environment Management, Introducing Green Finance, Creation of Climate Risk Fund, Introducing Innovative Products, etc. Green Marketing, On-Line Banking, Employee Training & Client Awareness, Formulation of Sector Specific Environmental Policies, Green Strategic Planning, Setting Green Branches, Introducing Keeping this in view, the Board of Directors of the bank adopted Green Banking Policy of the bank for implementation and formed Green Banking Committee of Board of Directors comprising of Mr. Mohammed Abdul Aziz as Chairman of the Committee alongwith Director Mr. Ashok Kumar Shaha, Director Al-haj Mohammed Shamsul Alam, Director Mr.Abdul Ahad and Managing Director & CEO Mr. S.A. Farooqui as members of the Committee.
Islami Banking Wing has placed 5(five) memos in the meeting for kind approval.
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Corporate Social Responsibility (CSR) of Standard Bank Ltd. Standard Bank, in addition to contributing to economic growth, wants to achieve significant change in the communities. Standard Bank tries to improve community relations to cultivate understanding and We give below some of our CSR activities undertaken during the year 2011: i. Education ii. Health Total iii. Others Operating and Net Profit Description of initiatives Amount in BDT 1,20,000.00 9,45,500.00
credibility. The Bank is internally devoted to maintain Corporate Social Responsibility in numerous ways. It has excellent track record of support for charitable causes. In 2010, Standard Bank has spent Tk.38.79 million as donations for education, healthcare, community development, infrastructure highest standards of corporate governance, transparency and social and religious ethics. Our CSR program consists of three main dimensions: development, relief operations etc. We keep ourselves accountable for the social, environmental and economic impact of our operations. We design our policies and business practices to reflect the
1,04,27,651.00
93,62,151.00
The Board of Directors and the Management strongly believe that we should have firm commitment and obligation to the society we live in. We not only put in efforts for profit maximization but also focus on playing our due role for the benefit of the society. The Bank as whole is regarded as a Corporate Citizen and engaged in various social activities. Our initiatives include financial help and support in the victims of natural calamities for rehabilitation purpose. Even the Bank has generously given financial help for the treatment of poor and ultra poor section of the society.
areas of health, education and sports. We have participated in extending financial help to the family of
deceased army officers in BDR Darbar Hall tragedy. We have also donated handsome amount to the
Standard Bank Limited generated an operating profit of Tk. 286.89 crore in 2011 compared to Tk.277.08 crore in 2010 making a growth of 4%. After all provisions including general provisions on unclassified loans, profit before tax stood at Tk. 234.97 crore. Earning per share (EPS) is Tk. 3.19 in 2011. Dividend
3000 2500 2000 1500 1000
500 The Board of Directors recommended 20% stock dividend subject to the approval of the 0 Honble Shareholders for the year ended 31st December 2011 as well as obtaining no objection from Bangladesh Bank in order to maintain satisfactory capital base of the Bank.
Acknowledgement
Standard Bank Ltd. has achieved a satisfactory level of progress in all the areas of its operation during the year 2011. The members of the Board of Directors of Standard Bank Ltd. take this opportunity to offer their sincere thanks to the Government of the Peoples Republic of Bangladesh, different Ministries, Bangladesh Bank and other regulatory bodies for their guidance, support, help and cooperation towards the overall growth and development of the bank during the year 2011. The directors have expressed their deepest sense of gratitude and thanks to the valued clients, patrons and wellwishers for their continued support. Finally, we cordially thank and appreciate the Executives, Officers and members of the Staff for their commitment, devotion, dedication, loyalty and hard work that they have rendered towards overall growth, development and progress of the Bank. On behalf of the Board of Directors
Honble Chairman of the Bank Mr. Kazi Akramuddin Ahmed is seen handing over key of a Pick up donated to Bangabandhu Memorial Trust
Ln. Kazi Akramuddin Ahmed Chairman
74
75
ANNUAL REPORT 2011
Project Financed by Standard Bank Ltd.
Project Financed by Standard Bank Ltd.
Inside view of Radial Group financed by SBL, Gulshan Branch, Dhaka.
A view of Afil Bricks Ltd. financed by SBL ,Banani Branch, Dhaka
A view of M/S. Incontrade Ltd. financed by SBL Agrabad Branch, Chittagong
Inside view of SAAD MUSA Group financed by SBL ,Khatungonj Branch, Chittagong.
Inside view of SAAD MUSA Group financed by SBL, Khatungonj Branch, Chittagong.
A view of M/S. Incontrade Ltd. financed by SBL Agrabad Branch, Chittagong
Inside view of Shangu Valley Cold Storage Industries Limited financed by SBL , Jubilee Road Branch, Chittagong.
Outside view of Shangu Valley Cold Storage Industries Limited financed by SBL , Jubilee Road Branch, Chittagong.
Inside view of Maven Design Ltd. financed by SBL ,Principal Branch, Dhaka .
Outside view of Showrab Poultry, Dairy & Fish project financed by SBL ,Agrabad Branch, Chittagong.
Inside view of Paramount Textile Ltd. financed by SBL, Gulshan-1 Branch, Dhaka.
Inside view of Deganta Sweaters Ltd. financed by SBL, Gulshan Branch, Dhaka.
76
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ANNUAL REPORT 2011
Status of Compliance of Bangladesh Banks guideline for Corporate Governance (BRPD circular no 16 dated 24.07.2003)
Sl. No. 1 Particulars Responsibilities and authorities of the Board of Directors (a) Work-planning and strategic management: (i) The board shall determine the objectives and goals and to this end shall chalk out strategies and work-plans on annual basis. It shall specially engage itself in the affairs of making strategies consistent with the determined objectives and goals and in the issues relating to structural change and reorganization for enhancement of institutional efficiency and other relevant policy matters. It shall analyze/monitor at quarterly rests the development of implementation of the work-plans. (ii) The board shall have its analytical review incorporated in the Annual Report as regard the success/failure in achieving the business and other targets as set out in its annual work-plan and shall apprise the shareholders of its opinions/ recommendations on future plans and strategies. It shall set the Key Performance Indicators (KPIs) for the CEO and other senior executives and have it evaluated at times. Compliance status
Complied
Complied
A view of team of senior Management of Standard Bank Limited.
(b) Lending and risk management: (i) The policies, strategies, procedures etc. in respect of appraisal of loan/investment proposal, sanction, disbursement, recovery, reschedulement and write-off thereof shall be made with the boards approval under the purview of the existing laws, rules and regulations. The board shall specifically distribute the power of sanction of loan/investment and such distribution should desirably be made among the CEO and his subordinate executives as much as possible. No director, however, shall interfere, directly or indirectly, into the process of loan approval. (ii) (c) Internal control management: The board shall be vigilant on the internal control system of the bank in order to attain and maintain satisfactory qualitative standard of its loan/investment portfolio. It shall review at quarterly rests the reports submitted by its audit committee regarding compliance of recommendations made in internal and external audit reports and the Bangladesh Bank inspection reports. (d) Human resources management and development: (i) Policies relating to recruitment, promotion, transfer, disciplinary and punitive measures, human resources development etc. and service rules shall be framed and approved by the board. The chairman or the directors shall in no way involve themselves or interfere into or influence over any The board shall frame policies for risk management and get them complied with and shall monitor at quarterly rests the compliance thereof.
Complied
Complied
Complied
A view of team of Management Committee of Standard Bank Limited.
Complied
78
79
ANNUAL REPORT 2011
Sl. No.
Particulars
(ii)
administrative affairs including recruitment, promotion, transfer and disciplinary measures as executed under the set service rules. No member of the board of directors shall be included in the selection committees for recruitment and promotion to different levels. Recruitment and promotion shall have to be carried out complying with the service rules i.e., policies for recruitment and promotion. The board shall focus its special attention to the development of skills of banks staff in different fields of its business activities including prudent appraisal of loan/investment proposals, and to the adoption of modern electronic and information technologies and the introduction of effective Management Information system (MIS). The board shall get these programs incorporated in its annual work plan.
Compliance status
Sl. No.
Complied
(b) The chairman may conduct on-site inspection of any bank-branch or financing activities under the purview of the oversight responsibilities of the board. He may call for any information relating to banks operation or ask for investigation into any such affairs; he may submit such information or investigation report to the meeting of the board or the executive committee and if deemed necessary, with the approval of the board, he shall effect necessary action thereon in accordance with the set rules through the CEO. However, any complaint against the CEO shall have to be apprised to Bangladesh Bank through the board along with the statement of the CEO. (c) The chairman may be offered an office-room, a personal secretary/ assistant, a telephone at the office and a vehicle in the business-interest of the bank subject to the approval of the board.
Particulars
Compliance status
Complied
Complied
(e) Financial management: (i) The annual budget and the statutory financial statements shall finally be prepared with the approval of the board. It shall at quarterly rests review/monitor the positions in respect of banks income, expenditure, liquidity, non-performing asset, capital base and adequacy, maintenance of loan loss provision and steps taken for recovery of defaulted loans including legal measures. (ii)
Complied
(f)
The board shall frame the policies and procedures for banks purchase and procurement activities and shall accordingly approve the distribution of power for making such expenditures. The maximum possible delegation of such power shall rest on the CEO and his subordinates. The decision on matters relating to infrastructure development and purchase of land, building, vehicles etc. for the purpose of banks business shall, however, be adopted with the approval of the board. Formation of supporting committees: For decision on urgent matters an executive committee, whatever name called, may be formed with the directors. There shall be no committee or sub-committee of the board other than the executive committee and the audit committee. No alternate director shall be included in these committees.
Complied
Responsibilities of Advisor The advisor, whatever name called, shall advise the board of directors or the CEO on such issues only for which he is engaged in terms of the conditions of his appointment. He shall neither have access to the process of decisionmaking nor shall have the scope of effecting executive authority in any matters of the bank including financial, administrative or operational affairs. Responsibilities and authorities of CEO The CEO of the bank, whatever name called, shall discharge the responsibilities and effect the authorities as follows:
No Advisor
(a) In terms of the financial, business and administrative authorities vested upon him by the board, the CEO shall discharge his own responsibilities. He shall remain accountable for achievement of financial and other business targets by means of business plan, efficient implementation thereof and prudent administrative and financial management.
Complied
Complied
(b) The CEO shall ensure compliance of the Bank Companies Act, 1991 and/or other relevant laws and regulations in discharge of routine functions of the bank. (c)
Complied Complied Complied
(g) Appointment of CEO: The board shall appoint a competent CEO for the bank with the approval of the Bangladesh Bank.
Complied
Responsibilities of the Chairman and Board of Directors (a) As the chairman of the board of directors (or chairman of any committee formed by the board or any director) does not personally possess the jurisdiction to apply policymaking or executive authority, he shall not participate in or interfere into the administrative or operational and routine affairs of the bank.
Complied
(d) The recruitment and promotion of all staff of the bank except those in the two tiers below him shall rest on the CEO. He shall act in such cases in accordance with the approved service rules on the basis of the human resources policy and sanctioned strength of employees as approved by the board. The board or the chairman of any committee of the board or any director shall not get involved or interfere into such affairs. The authority relating to transfer of and disciplinary measures against the staff, except those at one tier below the CEO, shall rest on him, which he shall apply in accordance with the approved service rules. Besides, under the purview of the human resources policy as approved by the board, he shall nominate officers for training etc.
The CEO shall report to Bangladesh Bank of issues violative of the Bank companies Act, 1991 or of other laws/regulations and, if required, may apprise the board post facto.
80
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ANNUAL REPORT 2011
Compliance Report on SEC's Notification

The Securities and Exchange Commission (SEC) requires all listed companies to report on the compliance of the conditions described in SEC's notification dated 20 February 2006 on "Comply or Explain" basis. The Board of directors of the Company has taken Number of Board Meetings and the attendance of Directors: Sl. Name of Directors Designation Chairman Director Director No. of Meeting held 14 14 14 No. of Meeting attend 14 12 5 14 Remarks SL. 1 2 3 4 5 6 7 8 10 12 13 14 18 19 20 11 9 Name of Directors Mr. Kazi Akramuddin Ahmed Mr. Mohammad Nurul Islam Mr. Ashok Kumar Shaha Mr. Ferozur Rahman Mr. S.A.M. Hossain Mr. Md. Monzurul Alam Mr. Mohammed Abdul Aziz Designation Chairman Director Director Percentage of share as on 31.12. 2011 2.41% 0.99% 1.64% 2.72% 1.57% 2.83% 2.35%
Mr.Kamal Mostafa Chowdhury
1 Mr. Kazi Akramuddin Ahmed 3 Mr. Mohammed Nurul Islam 4 Mr. Ashok Kumar Saha 5 Mr. Ferozur Rahman
Director Director Director
1.37%
2 Mr. Kamal Mostafa Chowdhury
Director
14
12
6 Mr. Harun Rashid Chowdhury
Director
Director
14
14
10
2 days leave was granted by the Board Relieved from Directorship vide
2 days leave was granted by the Board
Director Director
KmIJrKkKc/(IJr-2)651/9(2)V/2011 07.08.2011
dated 09.08.2011 with effect from 7 Mr. Md. Monzurul Alam 9 Mr. Mohammed Abdul Aziz Director Director 14 6 8 days leave was granted by the Board -
Bangladesh Bank letter No.
Mr. Abdul Ahad
Al-Haj Mohammed Shamsul Alam Mr. Md. Zahedul Hoque Al-Haj Mohd. Yousuf Chowdhury Investment Corporation of Bangladesh Mr. Md. Fayekuzzaman
Director
Director
Mr. Ferdous Ali Khan
8 Mr. S.A.M. Hossain
Director
14
10 Al-haj Mohammed Shamsul Alam 12 Mr. Md. Zahedul Hoque 13 Mr. Ferdous Ali Khan 14 Mr. Harun Or Rashid 11 Mr. Abdul Ahad
Director
Director
14
13
Director Director
Director
14
14
14
1 day leave was granted by the Board -
Mr. Moshfeque Mamun Rizvi
Vice Chairman Director Director
Director
Director
3.41%
2.60%
1.63%
1.36%
0.59%
0.44%
14 14
14
14
14
represented (ICB) by it's Managing Director Mr. Shaikh Mesbauddin
14 3
12
Mr. Sahazada Syed Nizamuddin Ahmed
Indipendent Director
Director
7.28%
0.94%
0.03%
KmIJrKkKc/(IJr-2)651/9(31)V/2011 03.10.2011
dated 05.10.2011 with effect from 15 Al-haj Mohd. Yousuf Chowdhury 16 Mr. Moshfeque Mamun Rizvi 18 Mr. Shaikh Mesba Uddin 20 Mr. S.A. Farooqui 17 Mr. Md. Fayekuzzaman, MD, ICB 19 Mr. S.S. Nizamuddin Ahmed Vice-Chairman Director Director 14 10 4 days leave was granted by the Board
Bangladesh Bank letter No.
Relieved from Directorship vide
iii) Shareholding of CFO, Group Company Secretary & Head of Internal Audit Chief Financial Officer & his spouse and minor children Head of Internal Audit & his spouse and minor children
Group Company Secretary & his spouse and minor children
0.0031%
0.01%
N/A
14
Managing Director Ex-officio Director
Ind. Director
Director
14 14
14 14
12 11
12
iv) Share holding of Senior Executive ( Top five salried persons other than CEO,CFO,CS,HIA ) 2) Md. Alauddin Al Azad 1) Mr. Md. Nazmus Salehin AMD Nil
2 days leave was granted by the Board -
14
14
3) Mr. Md. Abul Hossain
v) Shareholder(s) holding 10% or more voting interest in the company as at 31.12.2011
DMD-2
DMD-1
Nil Nil Nil
82
83
ANNUAL REPORT 2011
Shareholders Information Graphical Presentation

Annexure-II Status of compliance with the conditions imposed by the Securities and Exchange Commission's Notification No. SEC/CMRRCD/2006-158/Admin/02-08 dated 20 th February 2006: Conditions 1.0 1.1 1.2 1.3 1.4 Board of Directors & its reports
2.0 2.1 2.1
The members of the Board should not be less than 5 (five) and more than 20(Twenty) Appointment of Independent Non-shareholder Director i) Independent Director : at least 1/10 th i.e. minimum one ii) Appointment of Independent Director by elected Directors Chairman of the Board and Chief Executive Officer be different person with different roles and resposibilities Director's Report to include declarations on a. Fairness of Financial Statements b. Maintenance of proper books of accounts c. Consistent application of Accounting Policies in preparation of Financial Statements d. Observance of Bangladesh Accounting Standards (BAS) e. Soundness and efficiency of Internal Control f. Ability to continue as a going concern g. Significant deviations in operating results from last year h. Presentation of key operating and financial data for at least last three years I. Declaration of Dividend j. Number of Board Meeting held during the year and attendance by each Directors k. Shareholding pattern Appointment of CFO, Company Secretary etc. Appoinment of CFO,Company Secretary and Head of Internal Audit and defining their responsibilities Attendance of CFO and Company Secretary in the Board of Directors meeting
Complied
Compliance status
30 25 20 15 10 5 0 5 4 3 2 1 0
Non-complied
8000 7000 6000 5000 4000 3000
Conditions 3.0 Formation of Audit Committee & Its reporting 3.1 (i) Number of members of Audit Committee (ii) Inclusion of Independent Directors in the Audit Committee (iii) Fill the casual vacancy in Audit Committee (i) Chairman of the Board Audit Committee 3.2 (ii) Qualification and experience of Audit Committee Chairman
3.3.1 (i) Reporting by Audit Committee on its activities to the Board (ii) Report to the Board by the Audit Committee on conflict of interest etc. 3.3.2 Report by Audit Committee on the qualified point to the SEC 3.4 Report to the shareholders in the event of findings of certain occurrences under condition 3.3.1 (ii) above Statutory Auditors not to engage in : (i) Appraisal or valuation services (ii) Financial information systems design and implementation (iii) Book Keeping or other services related to financial statements (iv) Broker-dealer services (v) Actuarial services (vi) Internal audit services (vii) Any other services that the Audit Committee determines
Furnished reports to the Board N/A Audit Committee usually furnished reports to the Board No Yes Yes No No Yes Yes, on recovery of outstanding stuck up loan Audit Committee reports only to the Board
5 Yes Yes Mr. S. S. Nizam Uddin Ahmed M.Com. and Rtd. MD of NCB & also PCBs
Compliance Status
Annexure-III
2000 1000 0
4.0
84
85
ANNUAL REPORT 2011
5 Years Financial Highlights

Income Statement Interest Income Interest Expenses Net Interest Income 2,153 2007 408 289 613 347 3,000 1,967 84 3,227 938 443 1,469 974 495 2008 4,434 1,083 664 1,112 448 2009 (Figure in million Taka) 4,126 5,850 2010 6,024 8,192 2011 Credit Quality Volume of Non-performing loans Provision for Unclassified Loans Provision for Classified Loans Share Information 2007 263 61 2008 509 2009 697 1,017 512 211 32 559 2010 1,211 540 580 2011
1,745
2,253
3,351
Non-Interest Income
Non-Interest Expense
645 356 697
1,724 1,945 1,047 2,376 394 898
2,168 1,188
% of NPLs to Total Loans & Advances Provision for Off-Balance Sheet Items Number of Share Outstanding Earning per Share(Taka) Book Value per Share(Taka) Price Earning Ratio(Times) Dividend per Share: Cash Dividend ('%) Bonus Share ('%) Rights Share Issue Market price per Share(Taka)
1.52% 44
1,888 701
180
1.87% 245 115 22 282
1.83% 130 26 365
391
1.96%
2.19% 166 406
Net Non-Interest Income
Profit before Provision & Tax Provision for Loans & Assets Profit after Tax Profit after provision before Tax Balance Sheet Provision for Tax (Including Deferred Tax) Authorised Capital Shareholders Equity (Capital & Reserve) Borrowings Deposits Other Liabilities Liquid Assets Investments Money At Call & On Short Notice Loans & Advances Fixed Assets Other Assets Paid-up Capital
266
1,084 657 3,000 2,203
385
1,531
427
1,285 765 8,800 2,644
246
2,771
2,869
520
1,369 8,800 3,173
1,007
2,350 1,297 15,000 4,061
519
1,053
100.00 329.00 19 0
17.62
20
100.00 8
227.25 0
24.83
100.00 99
332.25 0
3.37
100.00 15
646.00 0
43.15
10.00 9
30.20 0
3.19
2,767 969
3,426 -
4,222 -
5,625 -
6,871 250
12%
19,214 4,715
29,305 1,480 6,291 20
42,556 2,224 9,686 630
58,344 13,637 2,627 300
63,871 17,343 3,962 1,900 510
Operating Performance Ratio Credit / Deposit Ratio(%)
2:1
20%
20%
28%
20%
Net Interest Margin on average earning assets Return on Equity(ROE) % Return on Assets(ROA)%
17,311 2,014 829 94
20
Net Non-Interest Margin on average earning assets
2.33% 15.32% 1.74% 90%
1.65%
3.72% 21.22% 1.95% 93%
1.89%
3.27% 20.01% 1.84% 89%
1.35%
3.80% 27.81% 2.06% 89%
2.31%
3.68% 20.75% 1.73% 87%
1.19%
27,190 3,218 614 115
38,056 5,340 179 1,081
51,758 7,624 823 379
55,332 9,534 1,768
Total Assets(excluding off-balance sheet items) Other Business Import Business Export Business Off-Balance Sheet exposure
22,949 9,806 26,155 17,788 411
13,423 35,689 25,072 830
34,210
13,860 29,177 40,411 697
49,001
22,168 56,167 41,919 1,044 5,577 794
66,596
17,104 50,497 45,356 2,815 6,956
74,953
Total cost of Fund Cost of Deposit(%) Other Information Urban Rural
Yield on average advance (%)
14.38% 9.67% 29 1.99%
14.50% 9.29% 32 1.69% 25
13.59% 9.33% 41 1.57% 32
13.03% 7.83% 58 1.61% 42
15.30% 9.98% 68 1.62% 47
Administrative cost (%)
Number of Branches Number of SME & Agriculture Branches Number of Employees Number of Shareholders Average earning assets Average Total assets Average Deposits Average Advance Average Equity Number of Foreign Correspondents
Foreign Remittance Capital Measures Total Risk Weighted assets Core Capital(Tier I) Total capital Tier I Capital Ratio Supplementary Capital(Tier II) Tier II Capital Ratio
23
16,083 2,993
2,767
24,780 3,822 3,423 399
34,939 4,739 4,208 531
61,763 6,371
67,629 7,702 746
226
Total Capital Ratio
18.61%
17.20% 1.41%
15.42%
13.81% 1.61%
13.56%
12.04% 1.52%
10.32%
9.03% 1.29%
10.29% 11.39% 1.10%
16,718
14,973
19,905 2,266
17,493
15,723 22
610
24,260
22,251
28,580 3,096
26,194
22,034 21
734
821 21
35,931
33,087 41,606 3,824
26
10
1018 22
32,623
50,450
44,907
57,799 4,924
45,317
32
14
1049 22
61,108
58,998 70,775 6,248
406
53,545
86
87

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ANNUAL REPORT 2011

Our Core Values

entity in a tangible manner through close adherence to

ANNUAL REPORT 2011

Al-Haj Mohammad Yousuf Chowdhury Directors

Mr. S.S. Nizamuddin Ahemd Mr. Md. Zahedul Hoque

Chairman Member Member Member Secretary

Mr. A.F.M. Nizamul Islam Chowdhury

Mr. Md. Fayekuzzaman, MD, ICB

Mr. Mushfeque Mamun Rizvi

Green Banking Committee

Chairman Member Member Member Ex-Officio Member Secretary

Al-haj Mohammed Shamsul Alam

Mr. S.A. Farooqui, Managing Director Mr. Syed Mohammad Masum

Shariah Supervisory Committee

Janab Prof. Mowlana Mohammad Salauddin

Janab Kazi Akram Uddin Ahmed

Chairman Member Member Member Ex-Officio Member Secretary

Group Company Secretary

Janab Hafiz Kazi Muhammad Ibrahim

Khatib, Baitul Mukarram National Mosque

Mr. A.F.M. Nizamul Islam Chowdhury

Janab Kazi Khurram Ahmed Janab S. A. Farooquir

STANDARD BANK LIMITED

STANDARD BANK LIMITED

ANNUAL REPORT 2011

Ln. Kazi Akramuddin Ahmed Chairman

Al-Haj Md. Yousuf Chowdhury Vice Chairman

Al-Haj Md. Shamsul Alam Director

Abdul Ahad Director

Md. Zahedul Haque Director

Harun-Or-Rashid Director (upto 02. 10. 2011)

Kamal Mostafa Chowdhury Director

Mohammad Nurul Islam Director

Ashok Kumar Saha Director

Ferozur Rahman Director

Ferdous Ali Khan Director

Moshfeque Mamun Rizvi Director

Md. Fayekuzzaman Director

Shaikh Mesba Uddin Director

Harun Rashid Chowdhury Director (upto 06. 08. 2011)

Md. Monzurul Alam Director

Mohammed Abdul Aziz Director

S. S. Nizamuddin Ahmed Independent Director

S. A. Farooqui Managing Director & CEO

STANDARD BANK LIMITED

STANDARD BANK LIMITED

ANNUAL REPORT 2011

listed in Dhaka Stock Exchange Limited and Chittagong

A public limited company incorporated in Bangladesh on 11th

Commencement of business Registered Office Telephone Telefax

SWIFT Code E-mail

122-124, Motijheel C/A, Dhaka-1000. +880 2 7176367, 7169078 SDBLBDDH

+880 2 7175698, 7169134, 9560299, 9558375

Metropolitan Chamber Building (3rd floor)

Web Page Auditors

www.standardbankbd.com Chartered Accountants Barrister-at-Law Mr. M. Ziaul Hasan

Khan Wahab Shafique Rahman & Co.

Advocate & Tax Consultant Managing Director & CEO

M/s. Hasan & Associates Alhaj Md. Serajul Islam

Additional Managing Director Deputy Managing Director

Md. Nazmus Salehin

Group Company Secretary